The status of the highly anticipated Marvel’s Blade has become uncertain as Microsoft initiates a review of potential strategic options for its developer, Arkane Lyon, which could include a sale or closure.

Reports indicate the project had already been internally delayed to late 2027 and was struggling with budget overruns. This news follows a major Xbox reorganization that includes 3,200 layoffs across the company, though Microsoft maintains that its other major first-party projects remain unaffected.