Arkane Lyon, the French studio behind acclaimed titles like Dishonored and Deathloop, may face closure on November 13th if a buyer is not found. This deadline stems from French labor laws that require companies with over 1,000 employees to seek a buyer before initiating mass layoffs or shutting down operations. Xbox, which acquired Arkane Studios as part of its ZeniMax Media purchase in 2021, has been divesting or closing several studios following a strategic reset. The fate of Arkane Lyon has been uncertain since July, when it was designated for review, unlike sister studio Arkane Austin, which was closed in 2024 after the underperformance of Redfall.
Despite the looming uncertainty, Arkane Lyon has continued development on its upcoming project, Marvel's Blade. Union representatives speaking to French newspaper Le Monde report that the game is "nearing the end" of its development. They described the prospect of leaving Blade unfinished as a "monumental waste," especially considering Xbox's reported desire to cancel the game entirely. The game, announced at the Game Awards in 2023, has seen minimal updates since its reveal. The developers are hopeful that the progress made on Blade might encourage a potential buyer to step forward.
Arkane founder Raphael Colantonio has reportedly inquired about the cost of buying the studio back from Xbox. With approximately three weeks remaining before the November 13th deadline, Arkane Lyon's future, and that of its Blade project, remains precarious. The studio's potential closure would mark the end of a developer known for its unique immersive sim experiences and leave Marvel's Blade as another unreleased project in the troubled history of game adaptations for the character.