Microsoft Accused of Sabotaging Marvel's Blade Development to Justify Arkane Closure

Workers at Arkane Studios have accused Microsoft of deliberately undermining the development of Marvel’s Blade and using the resulting delays and rising costs to justify shutting down the studio.

The allegations come from French video game workers’ union Syndicat des Travailleureuses du Jeu Vidéo (STJV), which claims Microsoft created the financial and development problems it now cites as reasons to close Arkane.

The accusations emerge as Microsoft reportedly considers multiple bids for Arkane Studios, including one from Ubisoft.

Arkane workers accuse Microsoft of deliberately delaying Marvel’s Blade

According to a statement published by STJV, Microsoft imposed a 19-month hiring freeze that left Arkane understaffed and caused significant delays in the development of Marvel’s Blade.

The union claims these restrictions increased development expenses, which Microsoft is now allegedly using to justify shutting down the studio.

STJV also argues that Arkane’s financial situation does not accurately reflect its performance. According to the union, revenue from previous Arkane games does not appear in the studio’s financial results, while Microsoft regularly transfers remaining cash to the wider group through a cash-pooling arrangement.

Workers believe these accounting practices make Arkane appear less financially viable than it actually is.

The union maintains that Microsoft has deliberately weakened the studio through insufficient funding, hiring restrictions, and financial decisions that undermine its long-term sustainability.

These remain allegations from STJV, and Microsoft has not publicly responded to the accusations in the supplied report.

Union says Marvel’s Blade development is progressing well

Despite the financial uncertainty, STJV claims development of Marvel’s Blade is progressing well and that the game’s expected quality remains consistent with Arkane’s previous releases.

The union argues that closing the studio could ultimately cost Microsoft more than allowing developers to complete the project.

Workers want to finish Marvel’s Blade while also securing Arkane’s future beyond the game’s release.

However, Microsoft has not announced a confirmed release date or launch window for Marvel’s Blade, leaving questions about how close the project is to completion.

Arkane workers demand better compensation and involvement in sale negotiations

With Microsoft reportedly exploring potential buyers, STJV wants employees to have a direct role in negotiations over Arkane’s future.

The union is demanding employee representation during discussions with potential buyers, along with financial protections if a new owner subsequently dismisses workers for economic reasons.

STJV has also criticized Microsoft’s proposed redundancy package, arguing that it falls short of what employees should receive given the company’s financial resources.

The union believes Microsoft should provide stronger compensation and job security guarantees, particularly after the restrictions that workers claim contributed to the studio’s current situation.

Arkane could still close, affecting 217 employees

According to STJV, Microsoft extended the deadline for finding a buyer by one month after the union publicly raised concerns about Arkane’s future.

However, the studio still faces closure if Microsoft fails to secure an acquisition agreement.

Such a decision could affect 217 employees and leave the future of Marvel’s Blade uncertain.

The dispute also comes amid Microsoft’s strong financial performance. The company recently reported record FY27 Q1 revenue of $92.3 billion, with Azure growing 48%.

Meanwhile, its gaming business has faced challenges, as Xbox revenue fell 2% and hardware revenue declined 14%.

Via GamesRadar