Arkane on the Market and Blade in Jeopardy: Original Founder Queries Xbox CEO on Price

Xbox is facing a tough situation, and the future of Arkane Lyon, the studio behind beloved immersive sims, remains uncertain. Currently, discussions are taking place with the studio’s worker council to explore the possibility of a closure or sale. Amid this grim outlook, particularly concerning Arkane’s upcoming action title, Marvel’s Blade, the studio’s founder has posed a straightforward question to Xbox’s CEO: “how much?”

Raphael Colantonio shared his thoughts on social media in response to a layoff memo from Asha Sharma. He quipped, “Regarding Arkane… how much? I’m asking for a friend,” accompanied by a playful emoji. Colantonio, who founded Arkane Lyon in 1999 and co-directed Dishonored with Harvey Smith, also directed Prey before departing the studio in 2017. He has since established WolfEye Studios, released the immersive sim Weird West in 2022, and is currently developing a second game.

If Colantonio were genuinely interested in acquiring the studio or had investors lined up, it’s likely a deal would have been reached privately rather than aired on social media. However, given the current transparency from Xbox’s leadership, anything is possible.

Marvel’s Blade was first revealed in 2023 but has been notably absent since then. When it didn’t appear at the Xbox summer showcase in June, chief content officer Matt Booty hinted that it might show up at a future event. Recent reports indicate that if that happens, it will be due to another company stepping in to finish the game’s development, as it has faced delays and budget issues.

In a memo to staff, Sharma noted that Arkane’s management is starting mandatory consultations with its Works Council to explore potential strategic options. This negotiation process could take months, and the outcomes could range from layoffs and new management to outright closure and cancellation. If the latter occurs, Microsoft would be responsible for dismantling both Arkane studios acquired during the Bethesda deal. Arkane Austin was previously shut down during a round of significant layoffs in 2024, making the potential loss of Arkane Lyon all the more heartbreaking.