Arkane Lyon gets more time to save Marvel’s Blade

Microsoft has extended the consultation period surrounding Arkane Lyon, giving the French studio additional time to find a buyer or another partner while it continues development of Marvel’s Blade.

The extension comes during a major restructuring of Xbox’s studios. Microsoft announced in July that it planned to cut 3,200 jobs from its Xbox division over the following year, with more than 1,800 positions already removed. Several studios were also placed at risk, although Double Fine, Compulsion Games and Undead Labs secured their independence from Microsoft. Ninja Theory, the studio behind Hellblade, is expected to close.

Arkane Lyon is among the remaining major studios facing an uncertain future. Its position in France means Microsoft must follow a formal consultation process before making a final decision. French employment protections require companies to investigate potential alternatives, including the possibility of finding a buyer.

Arkane Lyon’s deadline has been extended

Reporting from PC Gamer and Le Monde indicates that France’s Florange Law requires companies with more than 1,000 employees to seek possible buyers before closing a site. Arkane Lyon’s original deadline was 13 November 2026, after which Microsoft could seemingly have proceeded with a closure if no alternative had emerged.

Microsoft has now added another month to the consultation. A company representative said the extra time would allow Microsoft to explore options, including finding a partner capable of supporting Arkane through the remaining development work on Marvel’s Blade. The representative also stressed that documents referring to a possible closure were part of the required consultation process rather than a final decision.

That means Arkane Lyon should have until at least the middle of December to find a buyer or development partner. The studio had not appeared to secure a buyer several months into the consultation process, but the extension keeps that possibility open.

“There are multiple paths actively being explored that would save Arkane Lyon,” Bloomberg journalist Jason Schreier wrote in a Bluesky post.

Schreier added that he would be surprised if the studio closed, noting that shutting down a French development team can be particularly costly because of extended severance obligations under French labour law.

Why Arkane Lyon matters

Arkane Lyon has built a strong reputation over roughly 15 years. The studio created both Dishonored games and the time-loop action game Deathloop. All three titles were critically acclaimed, with Dishonored 2 especially recognised for its sophisticated level design.

The studio’s current project is Marvel’s Blade, an action game starring Marvel’s vampire-hunting anti-hero. Gameplay footage has not yet been shown, but union representatives told Le Monde that development was nearing completion.

For players following the project, the consultation extension is a cautiously positive development rather than a guarantee. Arkane Lyon still needs to secure a viable future, while Microsoft has not confirmed whether the studio will remain under its ownership.

Arkane’s history is a useful reminder of how much creative identity can sit behind a development team. Readers interested in the hardware side of gaming can explore RETROCADE’s Arcade Blog, compare options in the Arcade Machine Buying Guide, or browse arcade machines for a dedicated games room.