As XBOX‘s division-wide layoffs loom on the horizon, reports are circulating which state that the company is considering shuttering Arkane Studios. Further, XBOX has officially pulled funding of IO Interactive’s Project Fantasy game, marking the cancellation of the project, and leading to layoffs within IOI.
A spokesperson within Xbox stated, in response to the end of its funding of Project Fantasy, that “we’re not reducing our overall investment in games. We expect to invest about the same in content as we did last year. What’s changing is where we’re investing and the kinds of projects we’re backing.” In addition, the cancellation of Arkane Studios would also result in the cancellation of Marvel’s Blade, initially announced in December 2023. Reportedly, though, XBOX is debating selling off some of its studios.
Some of the studios that may be sold include Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, alongside Arkane. All five studios have recently released games within the last year, or have major titles in development, such as South of Midnight, Kiln, Senua, and State of Decay 3. Although, according to IGN, Hideo Kojima’s OD is “safe” from cancellation. Only time will tell which studios are specifically effected, though, as The Verge states that these layoffs are expected to begin on July 6.
Recently, XBOX announced that the price of Xbox Series X|S consoles will increase by $100 for 512 GB models and $150 for 1 TB models on August 1. According to XBOX, the price increase for Xbox Series X|S is attributed to console storage and memory prices being increased by 2.5, with another doubling projected for fall of 2027. To offset the change in price, XBOX has implemented new buy now, pay later programs.
