Ubisoft is among several companies that have submitted bids to acquire Arkane Lyon, the French studio behind the Dishonored series and the upcoming Marvel's Blade, from Microsoft. This potential acquisition comes as Microsoft undergoes a significant "reset" for its Xbox division, which has included studio closures and layoffs.
According to a report from Bloomberg, at least three companies have placed bids for Arkane Lyon, though Microsoft has not yet accepted any. The report indicates that a sale would allow Arkane Lyon to continue development on Marvel's Blade, which is expected to be released within the next one to two years.
Microsoft previously closed Arkane's Austin, Texas studio in 2024. That studio was responsible for the poorly received Redfall and the earlier title Prey. Arkane Lyon, meanwhile, developed the critically acclaimed Deathloop and Dishonored 2.
In addition to the Arkane Austin closure, Microsoft has seen other studios move away from the Xbox umbrella. Double Fine and Compulsion Games have become independent, while Undead Labs has gone independent but secured a publishing deal for State of Decay 3. Ninja Theory is also facing potential closure after acquisition talks fell through.