Arkane Lyon's Future Uncertain as Takeover Talks Continue Ahead of November Deadline

The Dishonored and Deathloop studio faces potential acquisition or closure as French labor laws necessitate a buyer search.

Oct 23, 2026
Industry & Business
Arkane Lyon's Future Uncertain as Takeover Talks Continue Ahead of November Deadline

Negotiations surrounding the future of Arkane Lyon, the studio behind the Dishonored and Deathloop series, are reportedly considering "several forms of takeover" as a critical November deadline approaches. This situation stems from Microsoft's decision in July to part ways with the studio as part of broader layoffs.

French labor laws require companies with over 1,000 employees to actively seek a buyer for a period of three months before a studio can be closed. This legal framework means Arkane Lyon's fate remains undecided while these discussions proceed. The studio is currently focused on completing production for Marvel's Blade, which is reportedly nearing its end.

According to a report from Le Monde, approximately 217 jobs are at risk. The deadline for consultations with Arkane's Social and Economic Committee is November 13th, leaving a limited window to finalize a deal or reach an alternative arrangement. Representatives from the Printemps Écologique and Syndicat des Travailleureuses du Jeu Video (STJV) unions have expressed dissatisfaction with Microsoft's handling of the process.

Microsoft has stated that they are "actively seeking a partner to support the next phase of development and enable the commercialisation of the [Marvel’s Blade] project." Unions are advocating for Arkane's work to be released and are hopeful for an outcome that preserves employment for the studio's staff. An earlier announcement from Xbox regarding layoffs in September indicated that consultations regarding Arkane's future were expected to continue through the end of the year.

Sources