Arkane Lyon is facing a race against time. The French developer has until November 13 to find a buyer or risk being closed by Xbox, leaving its team and current project in serious uncertainty. Le Monde reports that staff representatives are seeking more time to secure the studio’s future.
Arkane became part of Xbox when Microsoft acquired ZeniMax Media in 2021. The company’s other major branch, Arkane Austin, was shut down in 2024 after the multiplayer vampire game Redfall failed to meet expectations.
Arkane Lyon was subsequently included among the studios placed at risk during Xbox’s sweeping restructuring in July. The changes also saw Double Fine and Compulsion Games spun off, Undead Labs become employee-owned, and Ninja Theory begin cutting staff after two efforts to preserve its position reportedly failed.
Arkane Lyon’s position remained unresolved rather than immediately ending. French employment law requires companies with at least 1,000 employees to make a genuine attempt to find a buyer before proceeding with mass redundancies or a closure. That three-month process is due to end on November 13, giving the studio only a few weeks to find new ownership. Gematsu has also reported on the buyer search.
The situation matters beyond the studio’s employment prospects because Arkane Lyon is developing Marvel’s Blade. The game was announced at The Game Awards in 2023, but Xbox has not provided further public updates about its progress. Reports have also suggested that the project was considered for cancellation.
That uncertainty contrasts with claims from union representatives speaking to Le Monde. They say Blade is “nearing the end” of development, arguing that abandoning it with the studio would be a “monumental waste”. The game is intended to give Xbox a major action title capable of competing for attention with PlayStation’s Wolverine and Spider-Man projects.
What happens to Marvel’s Blade?
One possible route to saving the developer came from Arkane founder Raphael Colantonio, who publicly asked how much it would cost to buy the studio back from Xbox. It is unclear whether the question represented a serious offer, but a takeover could provide a path for the Lyon team and its nearly completed project to continue.
For players who follow the craft of immersive action games, Arkane Lyon’s possible closure would be a significant loss. The studio built its reputation through Dishonored and Deathloop, while Blade represents its most visible upcoming project. Until a buyer is confirmed, both the team’s future and the game’s final release prospects remain unsettled.
For more coverage of the wider arcade and gaming industry, explore RETROCADE’s editorial updates. Readers considering a dedicated home setup can also browse arcade machines, compare options in the arcade machine buying guide, or investigate arcade light guns for action-focused play.
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