The immersive sim genre is one of the more underrepresented in the industry, owing to its complex and multi-layered nature alongside the fact that past successes have failed to hit the heights which shareholders demand. One team which was dedicated to the genre however was Arkane. In the wake of the closure of its Austin branch, a new studio has risen, with veterans Harvey Smith and Ricardo Bare announcing ‘Black Pony Immersive’.

In an interview with the publication TheGameBusiness, ex-Arkane co-studio head and immersive sim icon Harvey Smith announced that he has opened up a brand new studio alongside Ricardo Bare.

Named Black Pony Immersive, it is quite clear what the newly established studio will be focused on, with the team stating: “We want to make immersive sims. We want to make single player, narrative driven, first person games where you explore and solve problems creatively. Think Deus Ex, think Dishonored, that's what we're doing.”

While things remain in its early stages for now (having officially formed just a year ago and currently comprising of 26 developers), Black Pony Immersive includes plenty of talent.

For the uninitiated, not only is Harvey Smith known for his extensive work on the Dishonored series, but the creative has had a hand in many of the biggest games in the immersive sim genre going as far back as the original 1994 System Shock. Smith was also the lead game designer for the 2000 classic Deus Ex and even served as a game designer for 2004’s Thief Deadly Shadows.

The full interview with Smith and co. can be found HERE, and includes their thoughts on the immersive sim genre, the current state of the industry and much more.

KitGuru says: What do you think of this announcement? Is the immersive sim genre saved? What’s your favourite series worked on by Harvey Smith? Let us know down below.

Following tons of leaks and rumours, Microsoft finally came out and confirmed that they will be making some big changes at Xbox, including but not limited to the parting of ways with 5 different studios and more than 3000 job cuts. While specifics on the extent of these cuts were kept vague, we’ve now gotten a clearer picture of its impact.

In the wake of the official announcement that Microsoft is laying off over 3000 employees from across Xbox, we’ve started to learn more about where exactly these cuts have taken place.

As reported by the publication Game Developer, multiple sources confirmed that these recent Xbox cuts have impacted DOOM studio id Software rather heavily, claiming that “around 50 percent of employees at the Texas-based studio have been laid off” – said to be a little under 100 developers.

Another team impacted is Obsidian Entertainment, with sources telling Kotaku that around 60-70 of its employees have been let go, amounting to roughly 25% of the studio.

One studio whose future still remains influx is Arkane Lyon, with The Verge’s Tom Warren claiming that “Arkane Studios is currently working on Blade under Xbox management, but the project has been delayed and is running over budget” adding that “it's not clear what will happen to Blade or Arkane Studios just yet.”

Of course, this is but a small snippet of the thousands of developers who are unfortunately losing their jobs seemingly through no fault of their own. Expect more revelations on just how bad this latest suite of cuts have been as the days and weeks progress.

Discuss on our Facebook page HERE.

KitGuru says: What do you think of Xbox’s recent moves? Is there a strategy behind all of this? Let us know down below.

For the past month or so, we’ve been hearing countless talk surrounding Microsoft and its plans for Xbox, with leaks and rumours suggesting that studios could be shut down, games might be cancelled and Xbox overall could be in a very different place. Finally, Microsoft has broken its silence, confirming that nearly 5000 jobs across the company will be cut, with the likes of Double Fine and Compulsion Games now going independent.

As obtained by the publication The Verge (paywalled), Xbox CEO Asha Sharma recently sent a memo to employees addressing all of the rumours and giving a concrete idea of what’s in store for Xbox, writing:

“We are beginning the most significant restructure in XBOX history. After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today.”

In terms of what will become of Xbox’s many studios, Sharma finally offered clarity, adding: “Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games.”

Other studios are set to be impacted differently, with Sharma revealing that “Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.”

The full memo is rather lengthy, and covers all manner of topics from Xbox’s current business costs, the structure of the company, new appointees and more. Regardless, while this latest news is far from positive, it could have been even worse.

Hopefully Double Fine, Compulsion, Undead Labs, Ninja Theory and Arkane are all able to thrive under these new conditions.

Discuss on our Facebook page HERE.

KitGuru says: What do you think of this latest decision? Is it the best-case-scenario given the circumstances? Let us know down below.

2026 is a year of great change at Xbox, with the appointment of CEO Asha Sharma ushering in new strategies, a change in direction and a ‘reset’ of sorts. Unfortunately, part of this plan seems to include the closure of many different first party studios. While officially, we still do not know exactly what’s in store, insiders have claimed that Microsoft is hoping to still release all of its previously-announced games in one form or another.

The recent reports that Microsoft is looking to shut down / sell-off a bunch of its studios has led to a ton of chaos in the video games industry, with rumours ranging from claims that the console maker is hoping to sell off some of its studios, to statements suggesting that the likes of Double Fine; Arkane; Compulsion Games; Ninja Theory and more could be wholly shut down – despite some of them literally just announcing a new game.

While we will have to wait and see what becomes of these studios, insiders are now claiming that Microsoft could be giving the teams one last hurrah, with Jez Corden of Windows Central claiming: “The best-case scenario is some of these studios do find a buyer, but there are some of the studios that could either go there, could be independent, they could be bought out by the individuals who sold the company originally.”

Corden continued, “We're going to see it from next week. We're going to see a combination of studios going independent, studios being sold to the publishers, and then potentially some smaller studios potentially being closed. But then I would expect also head counts across the board. I think every studio is going to have layoffs, at least some layoffs.”

According to Corden, the one silver lining in all this is the fact that these potentially-shuttered studios could still receive an opportunity to get their games past the finish line, stating: “So from what I've heard, the plan is if they can't find a buyer, they'll try and see those studios through to complete in what has already been announced.”

Of course, Asha Sharma herself once said “the plan’s the plan until it’s not the plan” and so we will simply have to wait and see.

Discuss on our Facebook page HERE.

KitGuru says: What do you think of this latest report? Would it be better or worse if Microsoft were to let these teams finish their projects only to then be shut down regardless? Let us know down below.

In recent weeks, we have heard an increasing number of worrying reports concerning Xbox and its supposed plans to hold major rounds of firing – possibly resulting in the closure of multiple studios. While nothing official has come to pass, insiders have claimed that one of the projects potentially being affected is Arkane Studios’ much-anticipated Blade.

July looks set to be the time in which Microsoft will finally make its official decision on the fates of many of its studios, following the past few weeks of reports in which it was claimed that the likes of Double Fine Productions; Ninja Theory; Compulsion Games and others could be on the chipping block.

One studio whose name has also been thrown about is Arkane Lyon. Known for developing the Dishonored series; Deathloop and NOT Redfall, the France-based team have been working on Marvel’s Blade since early 2022.

Unfortunately, despite recent claims which seemed to suggest otherwise, it appears as though Arkane and Blade are potentially being shut down and cancelled respectively.

According to known industry insider Tom Warren via The Verge, “Microsoft is currently weighing closing at least five studios, including the developers behind Marvel's Blade,” adding that “Sources tell me Microsoft wants to cancel Blade as part of a wave of cost cuts and job losses that are planned for the company's Xbox gaming division.”

As per the report, Blade was internally delayed to late 2027, and was suffering from some budget-related issues – though it is not clear whether this is the reason for the potential decision.

Either way, it looks as though Microsoft are still willing to try and sell off these studios – Arkane included – and so hopefully all of these teams are able to stay together in one form or another.

Discuss on our Facebook page HERE.

KitGuru says: Have you been looking forward to Blade? How disappointed would you be if Arkane were to close down? Let us know down below.

Arkane Studios’ Blade project has been surrounded by uncertainty in recent months. The game did not reappear at this year's Xbox Games Showcase and with Microsoft set to announce another round of layoffs across the Xbox division soon, the lack of official news on Blade has led to concern that the game could be cancelled, or Arkane could be closed down. However, there are still signs of life for the Blade project.

A newly published Entertainment Weekly interview offers at least a small update on Blade. Although the piece went live in mid‑June, the interview itself took place back in May, and during that conversation Bethesda’s Todd Howard said he had seen Blade “just yesterday” and that Arkane is “doing a really great job”. Howard did not elaborate further, but his comments indicate that the project was still in active development very recently.

Howard primarily oversees Bethesda Game Studios, but he does occasionally check in on projects across Bethesda’s other studios. He was notably involved with MachineGames’ Indiana Jones and the Great Circle, which launched to strong reviews in 2024, so his awareness of Blade isn’t unusual.

With that said, the broader situation remains unclear. Xbox and Arkane have not provided an official update since the game’s first teaser, which contained no gameplay or release window.

KitGuru Says: I hope development on Blade continues. Unfortunately, we still don't know the full breadth of Microsoft's cost-cutting plans for Xbox. So far, only Ninja Theory, Double Fine and Compulsion Games are confirmed to be involved but there are likely to be some cuts across Zenimax (Bethesda parent company) too.

After hosting what many fans agreed was a solid Xbox Games Showcase earlier this month, Microsoft / Xbox have since found themselves surrounded by seemingly nothing but bad news. Alongside concerns of rising component costs, mixed messaging regarding console exclusives and more, insiders are now claiming that multiple Xbox studios could be on their way to being shut down soon including Arkane and Compulsion Games.

Following their recent summer games showcase, Microsoft have been talking quite a bit on the future of Xbox, referring to the next 100 days being a “reset” for the console maker while speaking candidly on some of the issues which the platform is facing.

In amongst all of this, multiple insiders have indicated that these changes could include a number of studio closures, with Mike Straw of Insider-Gaming claiming that both Arkane and Compulsion Games are “scared” and showing “real concern” that their studios could be shut down as part of these plans.

With regards to the latter, Kotaku’s Rebekah Valentine reported that Compulsion Games are indeed on the chopping block – although leadership at the studio is currently “in ‘negotiations’ with Microsoft over the studio’s fate”. Compulsion Games is of course known for their work on We Happy Few as well as the more recent South of Midnight.

While Arkane Austin was shut down back in 2024, their main studio – Lyon – has continued to operate and are supposedly currently working on the much-anticipated ‘Marvel’s Blade’. For context, Arkane Lyon is/was the more tenured of the two halves, being responsible for the likes of Dishonored 2; Deathloop and, as mentioned, the upcoming Blade.

Whether these studio closures will come to be or not, we will have to wait and see. That said, there is no denying that Microsoft / Xbox is planning a ton of changes over the coming months.

Discuss on our Facebook page HERE.

KitGuru says: What do you think of Xbox under Asha Sharma’s leadership? Have you been looking forward to Marvel’s Blade? Let us know down below.