Further Cuts Coming to XBOX: Arkane and Undead Labs at Risk

The reorganization plan for Xbox led by Asha Sharma, now at the helm of Microsoft's gaming division, continues, and day by day, studio closures and layoffs seem increasingly inevitable, despite Ninja Theory and Compulsion Games not yet being shut down. On the horizon, further cuts are looming with Undead Labs, the studio that developed State of Decay, and Arkane, which are now at risk of closure.

New Cuts for Xbox?

The latest wave of rumors about the future of Xbox involves two new development studios. The first is Undead Labs, which is developing State of Decay 3, a title shown at the recent Xbox Showcase. As with Ninja Theory, Microsoft is reportedly weighing various options, aiming to seek new buyers or find a way to make the studio independent before proceeding with a closure.

Then there’s the situation with Arkane. According to The Verge, Microsoft is considering the cancellation of Marvel's Blade, a title currently under development alongside the closure of Arkane. Again, alternative options are being evaluated before any shutdown.

Putting all the rumors together, it is clear that Xbox’s reorganization program involves cutting fixed expenses and, therefore, development studios. Past acquisitions have allowed Microsoft to significantly increase the number of development studios under its control. This choice has led to a rise in management costs for the entire gaming division that fails to generate sufficient revenue. The cuts seem inevitable.

The coming weeks should bring further updates on the matter. We will know more soon.