Arkane Lyon, the studio behind the upcoming Marvel's Blade game, is currently undergoing a "consultation" process in France, a move that could determine the fate of both the developer and its long-in-development project. This situation arises as Microsoft, the publisher, is implementing a broad "reset" that includes substantial layoffs and studio sales.

As part of this restructuring, studios like Ninja Theory and Undead Labs are being sold, while Double Fine and Compulsion Games are transitioning to independent operations. The outcome for Arkane Lyon, however, remains undetermined, with its local Works Council engaged in a review of "potential strategic options." This consultation, mandated by French labor laws, leaves open possibilities ranging from a sale to independence, or even closure, echoing the fate of its sister studio Arkane Austin.

The future of the Marvel's Blade game itself is equally uncertain. Microsoft has stated that no publicly announced first-party games are being canceled as part of the reset. However, if Arkane Lyon were to be sold, the status of the Blade project would likely fall into question, with Disney, the owner of Marvel, expected to play a role in any negotiations.

Co-founder of Arkane, Raphael Colantonio, who is no longer with the studio, humorously inquired about the potential cost of acquiring Arkane in response to the news.

Reports suggest that Marvel's Blade has been experiencing internal delays and has exceeded its budget. Initially aiming for a 2026 release, the game was reportedly pushed back internally to late 2027. This internal delay follows the game's absence from the Xbox Games Showcase in June.

Marvel's Blade was first revealed in December 2023 at The Game Awards with a CG trailer. Game director Dinga Bakaba described the game as a third-person action-adventure set in Paris. To date, no gameplay footage has been released. Arkane Lyon is known for its work on critically acclaimed titles such as Dishonored and Dishonored 2, and its expertise in world-building and level design is anticipated to be applied to the established Marvel universe. The development of a Blade film starring Mahershala Ali has also faced numerous setbacks.