Arkane Lyon Faces Potential Closure as Buyer Search Deadline Approaches

The acclaimed studio behind 'Dishonored' and 'Deathloop' has until November 13 to secure a new owner or risk shutting down.

Oct 23, 2026
Industry & Business
Arkane Lyon Faces Potential Closure as Buyer Search Deadline Approaches

Arkane Lyon, the studio currently developing Marvel's Blade, is reportedly facing a critical deadline of November 13 to find a buyer, according to a report from Le Monde. Should a suitable acquisition not materialize, the studio could face closure.

Microsoft has been engaged in a three-month search for a buyer, as mandated by French legislation known as the Florange Law. However, negotiations are described as "going badly." Worker unions are actively seeking to extend the timeframe to preserve jobs and are exploring various takeover scenarios. These possibilities include re-employing affected staff at other Xbox studios or pursuing legal action against Microsoft.

Development on Marvel's Blade is reportedly still on track, with a new reveal anticipated in early 2027 and a release slated for the fourth quarter of that year. The game was initially announced in December 2023, but details beyond concept art have been scarce.

A closure would mark the end of Arkane Lyon's 27-year history. The studio's early works include Arx Fatalis (2002), Dark Messiah of Might and Magic (2006), and KarmaStar (2009). In the 2010s, Arkane Lyon achieved significant success with the Dishonored series and Deathloop.

This situation follows the shutdown of Arkane Austin in May 2024, which occurred after the release of the poorly received Redfall. Arkane Lyon's potential departure from the Xbox Games Studios portfolio was announced earlier this year, alongside other studios like Double Fine Productions, Compulsion Games, Undead Labs, and Ninja Theory. While most of these studios have pursued independence, Ninja Theory is also expected to close after a deal with outside investors fell through.

Sources