Development of Marvel's Blade at Arkane Lyon had made solid headway — the team was reportedly close to a public reveal. Rumors about a cancellation and even the studio’s closure have circulated widely, but Microsoft (MS) has not issued any official confirmation. Insider Jeff Grubb says the project needs more time and budget; Xbox mgmt., now led by CEO Asha Sharma, is in a cost-cutting mood and apparently not ready to authorize new development spending.
This situation sits inside a broader Xbox "reboot" — other studios, e.g., Ninja Theory, Double Fine, Compulsion Games and Undead Labs, are also being discussed as possible candidates for sale or shutdown. Industry chatter is loud: Microsoft is asking each studio to demonstrate they can generate revenue (i.e., cover their costs), and that scrutiny is changing plans on the fly.
It’s rough to watch from the outside — you can’t help thinking about the people who build these games, the half-finished work left hanging, the scramble behind closed doors. For now, the vampire-hunter project’s future remains unclear.