Xbox reportedly considers canceling Marvel’s Blade and shutting down Arkane Lyon

The Daywalker may be getting staked before he ever swings a sword.

Man holding bat over shoulder in red light
(Image via Xbox)
TL;DR
  • Marvel's Blade by Arkane Lyon has reportedly slipped to a late 2027 internal release and is running over budget, prompting Microsoft to consider canceling it.
  • Arkane Lyon itself may be at risk, which would be the second Arkane closure under Xbox after Arkane Austin was shut down in 2024.
  • The game was revealed at The Game Awards 2023 but has shown zero gameplay since, and Microsoft has not publicly commented on its status.
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Microsoft is reportedly weighing whether to pull the plug on Marvel’s Blade, the third-person action game in development at Arkane Lyon. And the studio behind Dishonored and Deathloop may not survive the decision either.

According to the report, the game’s internal release date has slipped to late 2027 and the project is running well over budget. Blade was apparently meant to launch much sooner, possibly even this year, before development troubles pushed everything back.

Nothing’s final yet. Xbox is said to be “weighing” the cancellation, not actively pulling the trigger. Microsoft hasn’t made any public statement on the project’s status or on Arkane Lyon’s future.

Marvel’s Blade was revealed at The Game Awards 2023 with a stylish cinematic trailer. It was pitched as a third-person action game set in Paris, with Arkane Lyon putting its trademark dark, atmospheric design behind Marvel’s vampire hunter.

Since that reveal, there’s been no gameplay footage, no release window, and no major production updates. Two years later, the silence is starting to look telling.

The pairing made sense on paper. Arkane’s work on Dishonored and Deathloop already leaned heavily into stealth, melee combat, supernatural powers, and dense urban level design. A Blade game from this team felt like a natural fit.

Bad time to be a vampire hunter

The character has had a rough decade across media. Marvel Studios’ Blade reboot starring Mahershala Ali has been delayed and rewritten multiple times, and now the game adaptation looks shaky too.

For now, Arkane Lyon is still working on the project, and Microsoft hasn’t confirmed any decision. But after Arkane Austin and Tango, fans have every reason to be nervous about what “weighing” really means.

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