Urgent Plea to Rescue Arkane Amid Xbox Layoffs and Turmoil

WHO:

TechRadar - Arkane Studios, Xbox, Raphael Colantonio, Asha Sharma, Matt Booty

Kotaku - Raphael Colantonio, founder of Arkane Lyon, Harvey Smith, co-director of Dishonored

WHAT:

TechRadar - Xbox is experiencing layoffs affecting thousands of workers.

Kotaku - Negotiations are underway with Arkane's worker council regarding a possible closure or sale of the studio.

Kotaku - Arkane's upcoming action game, Marvel’s Blade, has been delayed and is over budget.

Kotaku - Raphael Colantonio asked Xbox’s CEO, “how much?” in response to the layoff memo.

WHERE:

Kotaku - Arkane Lyon is located in France.

WHEN:

Kotaku - Marvel’s Blade was announced in 2023.

Kotaku - Arkane Austin was closed in 2024.

WHY:

Kotaku - The negotiations with Arkane’s Works Council are part of a complex process to review potential strategic options amid Xbox's layoffs.

HOW:

Kotaku - The consultation process with Arkane’s management and its Works Council is required to explore strategic options, which could take months.

(UPDATED July 7, 2026 13:47 UTC)

Xbox is facing significant layoffs that are impacting thousands of workers, prompting negotiations with Arkane's worker council about the potential closure or sale of the studio. Arkane Lyon, located in France, has also announced that their upcoming action game, Marvel’s Blade, is delayed and running over budget, following the closure of Arkane Austin in 2024. In light of these developments, Raphael Colantonio, the founder of Arkane Lyon, has directly questioned Xbox's CEO regarding the layoff memo, highlighting the urgency of the situation.