Arkane Austin’s Closure Could Prove to be a Ominous Shadow for Marvel’s Blade Developers Arkane Lyon

The pressure is on.

Arkane Austin's Closure Could Prove to be a Ominous Shadow for Marvel's Blade Developers Arkane Lyon


  • Microsoft has shut down several Bethesda studios.
  • Arkane Austin, the team behind Redfall, is officially closed.
  • Will Arkane Lyon close if Marvel's Blade fails to deliver?
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Microsoft and Xbox have announced the closure of several Bethesda studios. From Hi-Fi Rush’s Tango Gameworks to Redfall’s Arkane Austin, Microsoft is clearing house of studios that failed to meet massive expectations.


While Redfall flopped critically and financially, Hi-Fi Rush managed to surprisingly deliver after it was shadow dropped last year on January 25. Despite all of its success, Tango Gameworks were still shut down. 

What does this mean for the remaining Bethesda studios? Arkane Lyon who are currently working on Marvel’s Blade, could be axed too if the title flops?


Arkane Studios’ Only Hope – Marvel’s Blade

If it fails, what will happen to the studio?
If it fails, what will happen to the studio?

The past few years from Xbox have been interesting, to say the least. Arkane Austin’s closure isn’t the first time Xbox have shut down studios they purchased.

Competition among the three console manufacturers has been stagnant, with PlayStation leading and Nintendo doing its own thing. Xbox has always been behind PlayStation since the eighth console generation. The whole “used games” debacle at E3 2013 was not good for Xbox.


In Xbox’s efforts to catch up, it purchased a number of studios and developers, including Bethesda, in 2021. Most recently, Microsoft closed a deal with Activision Blizzard in late 2023. All of these acquisitions aside, Xbox is still behind PlayStation and closing down studios. 

Marvel’s Blade, among other Bethesda titles like Indiana Jones, The Great Circle, and The Elder Scrolls VI, are gamers’ most anticipated games from the studio. Not much is known about the project aside from it being described as a single-player, third-person action-adventure game with mature tones. 

Taking place in Paris, Marvel’s Blade seems like a recipe for success given the team is located in France. If Arkane Lyon fumble the vampire hunter Marvel game, Microsoft might shut it down too.


To Prevent Another Red Fall, Marvel’s Blade Must Succeed

No one is safe under Microsoft's umbrella.
No one is safe under Microsoft’s umbrella.

For Arkane Lyon, watching the Austin, Texas, studio close must be horrifying. The French studio are likely feeling the pressure to make Marvel’s Blade as successful as possible.

And while pressure may be good for certain people, it might be detrimental for others. Lyon has a good track record, with Deathloop and Dishonored 2 under its belt. However, as we’ve seen from Xbox’s actions, one failure or one lukewarm game could mean the end for a studio. 

Arkane Austin was only on its second project ever with Redfall. Prior, the team made Prey, which was received positively for its immersive sci-fi experience.


Marvel’s Blade must do well critically and financially if the folks at Arkane Lyon wish to stay afloat. Microsoft is getting very comfortable with purchasing studios to close them down later. 

Although Blade as a Marvel character is nowhere near as popular as Spider-Man or Guardians of the Galaxy, the project has already sparked interest within the community. Only time will tell if Marvel’s Blade will deliver or meet the same fate as Redfall

What do you think of Microsoft closing these Bethesda studios? Let us know in the comments what you think!


Written by Travis Vuong

Articles Published: 120

Travis Vuong is a games journalist and content creator. He's been a YouTuber since 2008 and continues to create videos under the "tvsonicgaming" banner. All social media accounts and his podcast: