Arkane Lyon, the studio behind games like Dishonored and Deathloop, is reportedly facing potential closure in mid-November if a buyer is not secured. The studio, which has 217 employees, is currently working on Marvel's Blade.
According to a report from Le Monde, French law requires companies with over 1,000 employees to seek a buyer for at least three months before closing a studio. The search for a buyer for Arkane Lyon reportedly began in the summer, with a deadline of November 13. Microsoft informed the studio of this decision on July 16, following wider layoffs and studio closures across its gaming division.
Negotiations regarding a redundancy plan are described as difficult, with worker unions attempting to secure more time for discussions. Several takeover proposals are reportedly being considered, and unions are hopeful about saving the studio and its jobs. Microsoft stated that it is "keeping the works council and employees informed and are actively seeking a partner to support the next phase of development and enable the commercialization of the project."
An internal document suggests that the cessation of activities could begin in late 2026 and extend into the first quarter of 2027. Unions are also advocating for affected staff to be rehired at other Xbox studios, citing limited prospects in the current video game market. The union has not ruled out legal action against Microsoft, alleging that the company is looking to divest Arkane despite its successful performance to improve short-term profitability.
Amidst these developments, concerns remain about the future of Marvel's Blade. The game was initially on track for a reveal early next year and a Q4 2027 release, but its status is now uncertain. Marvel Games has not yet responded to requests for comment. Bethesda Game Studios head Todd Howard had previously expressed positive remarks about the studio's work on Blade in May.