Last month, Xbox revealed plans for a major overhaul of its gaming division. Dubbed the Xbox Reset by CEO Asha Sharma, the company is making major changes to its investments to try to course-correct from poor financial performance. Reportedly, this will include layoffs and full studio closures starting as early as the first week of July, following the end of the current fiscal quarter. In other words, any day now. Since the reset was announced, rumors about which developers and games will be impacted have run rampant.
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According to The Verge, Xbox is considering shutting down several of its internal studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. Though not every studio on the list has revealed its next project, several have games that showed off new footage as recently as June. In addition, Xbox is rethinking its investment in third-party projects as part of broader cost-cutting measures. This means several big games could be at risk of cancellation once layoffs begin, if rumored studio closures move forward. Keep in mind that until official statements from the developers/games in question arise, these are just rumors that should be taken with a grain of salt.
4) IO Interactive’s Project Fantasy
IO Interactive is well known for its popular Hitman series. The developer also recently launched 007 First Light, which has claimed a solid 87 Metacritic rating. The studio is not owned by Xbox, so you might initially think the upcoming reset plan couldn’t impact them. However, IO Interactive recently announced that its upcoming game, a project dubbed “Project Fantasy” is at risk due to an external partner pulling out of the project.
Though IO’s initial post didn’t call out Xbox by name, subsequent reporting from Bloomberg confirmed that Xbox was indeed the partner in question. Xbox has since withdrawn its investment in the new IP from IO Interactive. The game is not outright cancelled, but the studio did have to reduce its staff due to the lost investment. So, the future of this original IP remains uncertain unless IO Interactive is able to find a new partner to help fund Project Fantasy.
3) Senua
Developer Ninja Theory is one of the studios heavily rumored to be on the chopping block in upcoming Xbox layoffs. Sources report that the recent reveal of Ninja Theory’s new game in its Hellblade series, Senua, may have been a bid to find a buyer for the studio. If rumors are true, Ninja Theory could be at risk of shutting down if it doesn’t find a buyer. And that means that, even though it was just announced, the new Hellblade game might not happen.
The game was revealed at the Xbox Games Showcase just last month, with a 2027 release window. As such, it was pretty surprising when rumors of a Ninja Theory shutdown first emerged. The game would be the third installment in the Hellblade series, which has received an overall positive reception from critics and fans alike. But if Ninja Theory really is on Xbox’s list of studios to shut down, the game might never actually make it to release day.
2) State of Decay 3
Another major game that just recently got a new trailer is State of Decay 3. The highly anticipated co-op survival game got its first gameplay reveal during the 2026 Xbox Games Showcase. Given that the last State of Decay game released back in 2018, the next installment has been in the works for a while now. Yet despite the game apparently moving toward release, rumors suggest that its developer, Undead Labs, could be closed as part of Xbox’s pending layoffs.
State of Decay 3 was first announced back in 2020. Along with the recent gameplay trailer, State of Decay 3 confirmed a 2027 release window and a day-one Xbox Game Pass release. But with Xbox Game Pass itself potentially being reevaluated as well, this entire plan could fall through. If Undead Labs is indeed going to be shut down or massively reduced by Xbox in the coming weeks, its next game might be at risk. It’s also possible that, given how far along the game is, it could wind up being the studio’s last game.
1) Marvel’s Blade
Xbox is also reportedly considering cancelling Marvel’s Blade. Given the popularity of Marvel games, this might sound like a surprising move. However, we have seen very little from Arkane Studios since the initial 2023 reveal of Marvel’s Blade. So, it’s possible that production isn’t as far along as Xbox wants it to be. Indeed, the game’s release window has been pushed back from initial expectations.
Currently, Marvel’s Blade is supposedly set to release in 2027. It is also supposedly costing far more than Xbox anticipated. So, it unfortunately does make sense that Xbox is looking at the game as part of its cost-cutting measures. With Xbox weighing whether to shut down Arkane Studios, the game could wind up being canceled in the not-too-distant future. It certainly wouldn’t be the first cancelled Blade project in recent years if that does happen.
Which games are you most hoping make it across the finish line as Xbox preps to cut costs? Leave a comment below and join the conversation now in the ComicBook Forum!
