Development and Buyer Search

Microsoft has said it's exploring the possibility of a company coming in to support Arkane Lyon as it works to finish development of Marvel's Blade, and that it's extending the deadline to find a buyer for the studio.

Arkane Lyon's 217 employees are currently at risk of losing their jobs unless a buyer is found for the famed immersive sim studio. According to a recent report, Microsoft wanted to close the studio as part of its sweeping cuts in the summer, but French law prevented it from doing so straight away.

Following that report, which claimed Arkane had until November 13 to find a new owner, Microsoft has extended the deadline by a month. Additionally, it said it's looking for a partner to support Arkane, presumably with financing, for the final stretch of Marvel’s Blade's development.

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, a Microsoft representative told PC Gamer. This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process.

Industry Context

The studio was first informed of Microsoft’s decision on July 16, shortly after new Xbox CEO Asha Sharma announced similar plans for Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs. Over 1,600 jobs were cut as part of the layoffs across Microsoft's gaming business.

Despite gloomy headlines, industry reports suggest multiple paths are actively being explored that could save Arkane Lyon from closure.

Shutting down a game studio is expensive, and closing a French game studio involves significant costs due to labor laws requiring an extended severance period.

Union Response

The union is currently pushing for re-employment of affected staff to other studios within Xbox should Microsoft fail to secure a deal for Arkane Lyon to survive.

Negotiations are ongoing, and the union has not ruled out legal action regarding the restructuring plans.

Marvel's Blade Progress

Marvel’s Blade was initially announced in December 2023 with a reveal trailer. Leadership from Bethesda Game Studios previously expressed strong support for the work being accomplished by the development team.