Arkane Lyon is still hunting for a buyer, and there’s a more hopeful report about how it might end. Bloomberg’s Jason Schreier says he understands that “multiple paths” that would save the Marvel’s Blade studio are being actively explored. It’s a report, not an announcement, and nothing has been confirmed by Microsoft. Here’s what’s been said so far, and what we make of it.
The deadline and the jobs at risk
As we reported earlier, French newspaper Le Monde says Microsoft wants to close the Lyon studio behind Dishonored and Deathloop. Gematsu’s write-up of the Le Monde report says 13th November was the end date for consultations with the studio’s Social and Economic Committee, with approximately 217 jobs at risk. Gematsu adds that the search for a buyer began in mid-summer under France’s Florange Law, which requires companies with at least 1,000 employees to look for a buyer when planning certain closures involving large-scale layoffs.
Gematsu also notes that this information comes from Le Monde’s reporting and union statements, not directly from Arkane Studios.
The 13th November date has since moved. PC Gamer reports that Microsoft has extended the consultation period by a month. A Microsoft representative told the site: “We have extended the consultation period by one additional month as we explore options, including finding a partner to support the studio through the development work still ahead. This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process.” The same representative said the documents that refer to a planned closure “are part of the required consultation process and do not represent a final decision”. We haven’t found the extension announced on Xbox Wire, so for now it rests on that statement to PC Gamer.
What Microsoft has said
According to Gematsu, Microsoft told Le Monde it was “actively seeking a partner to support the next phase of development and enable the commercialization of the [Marvel’s Blade] project”. That fits the line in Asha Sharma’s “Resetting XBOX” memo on Xbox Wire on 6th July: “In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.”
What Jason Schreier says
On Bluesky on 23rd October, Schreier wrote: “Let me share some positive news for a change: Despite all the gloomy headlines today, my understanding is that there are multiple paths actively being explored that would save Arkane Lyon. Anything can happen during negotiations, but at this point I’d be surprised if the studio is shut down.” Gematsu added the quote to its story.
In a follow-up post he said: “One important piece of context that many people might not realize: 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.” Replying to another user, he said he couldn’t “say for sure that Arkane will survive because deals can always fall through”, but that “there are currently multiple options on the table that would save the studio”.
One more reply is worth noting for Xbox fans. Asked whether Arkane would stay part of Xbox under these scenarios, Schreier answered: “There’s no scenario in which Arkane remains part of Xbox.” In other words, a rescue would most likely mean the studio leaving Microsoft.
It’s our view that Schreier gets a lot of things right and is generally very reliable. He has a strong track record on stories like this, and we’d take his read on the situation seriously. Even so, this is his understanding of ongoing negotiations rather than an announcement, and he’s open about the fact that deals can fall through. Treat it as encouraging, not settled.
Where Marvel’s Blade stands
Marvel’s Blade is Arkane Lyon’s mature, single-player, third-person game based on the comic book hero, announced by Bethesda Softworks and Marvel Games in December 2023 and set in a quarantined section of Paris during a vampire outbreak. You can read more on our Marvel’s Blade game hub. No release date has been announced.
The only detail on its progress comes from the union side. A representative from Printemps Ecologique, the studio’s sole representative union, told Le Monde the game “is nearing the end” of production and that it “would be a monumental waste” if it went unreleased, according to Gematsu. That’s one side’s assessment, not an official update from Arkane or Microsoft, and the union has a clear stake in the outcome. PC Gamer’s report adds a counterpoint: it says sources close to the studio claim Blade still has years to go before development is complete. The true state of the game isn’t public.
Our take: could Blade be further along than we thought?
This section is our speculation and opinion, not reporting.
Put the pieces together and one thing stands out to us. Microsoft isn’t just talking about a buyer for the studio. It says it’s looking for a partner to get the Marvel’s Blade project to commercialisation, and Schreier says several routes to saving Arkane Lyon are on the table. A rescue is an easier sell if the game is close to the finish line.
So it’s possible Blade is a lot further along than most of us assumed, and that someone coming in could be looking to push it over the line and out the door. It’s a guess, and the conflicting claims above show how little is publicly known. We’d love to be right. Until Microsoft or Arkane says more, treat it as a hopeful theory.
What happens next
With the consultation extended, the studio’s future is still undecided. Xbox is in the middle of a wider restructure, and we’ll keep an eye on whether a partner or buyer for Arkane Lyon is named. We’ll update this story when there’s something official.
Sources: Gematsu (Le Monde report, Microsoft statement, Schreier update), PC Gamer (consultation extension), Jason Schreier on Bluesky, Xbox Wire, Bethesda, Frandroid (Le Monde detail). Le Monde’s original article is paywalled.
