Xbox’s ‘Blade’ Studio Has Suitors Lining Up as the Game’s Fate Hangs on One Deal

Few superhero games have had as strange a journey as ‘Blade’. Marvel’s vampire hunter was announced at the Game Awards in 2023, and then the project went quiet. There were no other updates on the game’s progress, and Xbox reportedly wanted to cancel it entirely.

That silence turned into real alarm in October. Arkane Lyon, the studio behind ‘Dishonored’ and ‘Deathloop’, was looking for a buyer as it faced a possible shutdown, with the consultation over the proposed closure set to end on Nov. 13. For a studio with that pedigree, the news landed hard.

Microsoft then bought the team some breathing room. It extended the consultation period by a month, moving the deadline from Nov. 13 to Dec. 13. The company also said it was looking for more than a buyer, describing the search as one for a partner to support the studio through the development work still ahead.

Now there is fresh movement. According to a post from DiscussingFilm, the ‘Blade’ game is expected to release within the next 1 to 2 years. The post adds that multiple companies have made offers to buy Arkane, and that any deal will likely allow the game to be finished. It cites a scoop from Bloomberg‘s Jason Schreier, published Nov. 3.

The report puts a recognizable name in the mix. Ubisoft is one of 3 gaming companies that have submitted bids for Arkane Lyon, while the other 2 bidders have not been identified and the terms of any offer were not disclosed. Bloomberg’s reporting indicates that a deal would most likely let Arkane finish the game without interruption.

Outside buyers may not be the only path forward. Xbox is reportedly weighing all options for Arkane, including a sale to the studio’s own management. That could mean the studio goes indie or lands at Ubisoft.

The urgency makes more sense given how far along the game reportedly is. Union representatives speaking for developers told Le Monde that ‘Blade’ is nearing the end of its development, and that leaving it unfinished after a closure would be a monumental waste. If that is accurate, a finished game is within reach, and what remains is the question of who pays to get it over the line.

A release within 1 to 2 years would also fit with earlier chatter. Industry insider Jeff Grubb said on the Xbox Era podcast that Arkane Lyon was targeting a 2027 release. That timing was a rumor then, but the new report suggests the studio’s schedule is still on track.

There was already some cautious optimism earlier this fall. Schreier said he would be surprised if the studio were shut down, especially given how expensive that would ultimately be. Multiple bids appear to back up that read.

Still, fans have reason to stay wary, because Xbox has closed studios before. The closure of Arkane Austin showed that a decades-long legacy offers no protection. That precedent is why an actual signed deal matters more than a pile of offers.

For now, all eyes are on Dec. 13. If one of those bids turns into a partnership, ‘Blade’ may finally get the ending its long, bumpy road has been missing. If not, the Daywalker’s big return could end up as one of gaming’s great what-ifs.