The Blade game developed by Arkane Lyon is still in development and has not been affected by the layoffs.
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In the midst of a day marked by cuts, cancellations, and studio closures within Xbox Game Studios, one of the most anticipated Xbox titles has confirmed that it’s still alive. We’re talking about Blade, the highly anticipated project from Arkane Lyon, which has not been canceled and continues its development as normal.
The game was announced in late 2023 as a reimagining of the iconic Marvel vampire hunter, with the characteristic seal of the French studio behind Dishonored and Deathloop. After the cancellation of titles like Perfect Dark and Everwild, doubts arose about other internal developments, but it has been confirmed that Blade has not been affected by this wave of layoffs.
The studio maintains its course despite Xbox cuts
According to reports, Arkane Lyon has managed to avoid the adjustments that have hit studios like Rare or The Initiative, whose productions have been interrupted. In the case of Blade, the artistic vision and gameplay approach will continue as initially planned, reinforcing Microsoft’s strategy of betting on projects with strong creative and brand potential.
With no official release date in sight, Blade remains one of the highest-profile games in Xbox’s future lineup. Although there’s still much to be discovered, this small reprieve for Arkane Lyon represents one of the few positive news stories in a context where 4% of Microsoft’s global workforce has lost their jobs.
Arkane Lyon Blade is safe from cancelation. pic.twitter.com/boOfGkipj4
— HazzadorGamin, Dragon of Dojima (@HazzadorGamin) July 2, 2025

