The latest announcement of XBOX layoffs is live, and one of the four studios impacted is Arkane Lyon.
In a report last month, players were informed that at least five studios are at risk, with one of them being Arkane. Moreover, their upcoming title, Blade, was also at risk of being canceled. Today, players have received official statements from the affected studios and their plans going forward.
Arkane Lyon’s Future is Unknown
Asha Sharma’s recent statement confirms that we are witnessing the “most significant restructure in Xbox history.” This restructuring will involve layoffs affecting 3,200 employees throughout FY27, with 1,600 of those occurring today. Additionally, this decision will result in four studios leaving Xbox and moving under new management. A report from Windows Central indicates that the futures of Arkane and Blade are uncertain, as Microsoft is currently in discussions with the French government to determine the next steps for the studios in an effort to prevent their shutdown.
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Arkane faced a serious setback with Redfall; however, hopes for the studio went up again when they announced they were working on a new Blade game. We received several updates from the developers since 2023, with them saying that they were ‘super proud’ of the special game they were creating. Todd Howard had also chimed in just last month, stating that he had seen the game recently and “the folks at Arkane are doing a really, really great job.
What are your thoughts on Arkane Lyon being impacted in the latest XBOX layoffs? Leave your thoughts down in the comments, and join the official Insider Gaming Discord server.
For more information from Insider Gaming, read about Black Ops 6 being removed from Call of Duty HQ this week. Don’t forget to sign up for our weekly newsletter.
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