Microsoft has granted Arkane Lyon an additional month to find a potential buyer, a move that could stave off the studio's closure. The extension comes as the French studio continues development on Marvel's Blade, an action game based on the vampire-slaying Marvel anti-hero.
This extended consultation period, which was originally set to end on November 13, 2026, now allows Arkane Lyon more time to explore options, including finding a partner to support the studio. A Microsoft representative confirmed the extension to PC Gamer, stating that it was part of the required consultation process and does not represent a final decision.
Arkane Lyon, known for its critically acclaimed titles such as the Dishonored series and Deathloop, faced potential closure as part of Microsoft's ongoing "reset" of its Xbox division. Following significant layoffs across the Xbox division, several studios, including Double Fine and Compulsion Games, were able to regain their independence. However, Ninja Theory is still expected to shut down.
France's "Florange Law" mandates that companies with over 1,000 employees must seek potential buyers before closing a studio. Reports from French outlet Le Monde indicated that Xbox intended to shut down Arkane Lyon, but this law requires the company to explore all avenues first. Despite the original deadline passing, Arkane has not yet secured a buyer.
Journalist Jason Schreier has shared optimistic insights on Bluesky, suggesting that multiple paths are being explored to save Arkane Lyon. He expressed surprise if the studio were to be shut down, noting the significant costs associated with studio closures, particularly given French labor laws that would require extended severance packages for employees.
Arkane Lyon's current project, Marvel's Blade, is reportedly nearing the end of its development, according to union representatives who spoke with Le Monde. This marks the latest attempt to bring the character to gaming, following several previous canceled Blade projects. The studio's previous works, including Dishonored 2, have been widely praised for their intricate level design and gameplay.