Arkane Lyon, the studio behind Deathloop and the upcoming Marvel's Blade, has been granted an extension on its deadline to find a new buyer. Originally set for November 18, Microsoft has extended the consultation period by one month, now allowing the studio into December to explore options that could include finding a partner to support the continued development of Marvel's Blade.
Under French law, Microsoft was required to spend at least three months searching for a new owner after announcing its divestment from Arkane Lyon earlier this year. This new extension suggests that the company is actively seeking solutions beyond a simple shutdown. A Microsoft representative confirmed to PC Gamer that they are "exploring options" and "finding a partner" to help Arkane Lyon.
This development aligns with reports from Bloomberg's Jason Schreier, who previously noted that shutting down Arkane Lyon would be a costly endeavor for Microsoft, particularly due to French labor laws requiring extended severance packages. "Shutting down a game studio is expensive. Shutting down a French game studio--thanks to labor laws requiring an extended severance period--is VERY expensive. Xbox doesn't want to take on those costs," Schreier stated.
Should these efforts to secure a new owner or partner fail, Arkane Lyon's union is reportedly lobbying Microsoft to re-employ affected staff within Xbox Game Studios or face potential legal action. A union representative told IGN that the redundancy plan needs to be adapted to the current video game market, where job prospects are scarce.
Arkane Lyon officially announced its work on Marvel's Blade in December 2023. Since then, details about the game's progress have been scarce, with only a few pieces of concept art showing Blade battling vampires in Paris being released. Reports indicated that Marvel's Blade was slated for a reveal in early 2027, with a potential launch in the fourth quarter of that year.