Arkane Lyon, the French studio behind Dishonored and Deathloop, reportedly has until November 13 to find a buyer or face closure. The deadline, first reported by Le Monde, puts around 217 jobs and the nearly finished Marvel's Blade at risk.

Microsoft says it is looking for a partner to finish and release Blade, and reports suggest several takeover options are on the table. But with less than three weeks to go, the future of one of the most respected studios in immersive sims is still unresolved.

Official Deathloop screenshot from Arkane Lyon
Deathloop, released in 2021, is Arkane Lyon's most recent game. Image: Bethesda Softworks

Arkane Lyon's November 13 deadline: what we know

According to Le Monde's report, picked up by outlets including Gematsu and VGC, the proposed closure of Arkane Lyon is going through a formal consultation process with the studio's Social and Economic Committee. That consultation ends on November 13, which effectively sets the deadline for a sale.

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The process is shaped by French labor law. Under the so-called Florange Law, companies with at least 1,000 employees must look for a buyer before closing a site in a way that involves large-scale layoffs. The search for a buyer reportedly began in mid-summer.

Key details from the reports:

  • Jobs at risk: roughly 217 positions at the Lyon studio.
  • Buyer search: a union representative says "several forms of takeover" are being considered.
  • Current project: Marvel's Blade, which the union describes as nearing the end of production.

Microsoft's position on Marvel's Blade

The only company statement in the reports came from Microsoft, which told Le Monde it is "actively seeking a partner to support the next phase of development and enable the commercialization" of Blade. In other words, Microsoft is not presenting the game as cancelled, but it is also not committing to finish it in-house.

Workers' representatives have been blunt. Printemps Écologique, the studio's sole union, said shelving the game after so much work would be a "monumental waste." France's video game workers' union, the STJV, also backed the team and said it believes the game would succeed if released.

There is some room for optimism. In an update reported by Gematsu, Bloomberg's Jason Schreier said "multiple paths" are being explored to save the studio and that he would be surprised if it shut down, while warning that negotiations are unpredictable.

Official Dishonored 2 screenshot from Arkane Lyon
Arkane Lyon developed Dishonored 2, released in 2016. Image: Bethesda Softworks

How Arkane got here

Xbox announced in July that it planned to divest Arkane, part of a wider round of cuts across Microsoft's game studios this year. Reports at the time described thousands of layoffs and plans to divest several studios. Other teams have had mixed outcomes: VGC notes that Undead Labs became independent, while Ninja Theory could not secure a deal and is laying off staff.

For Arkane, it is the second blow in a short span. Microsoft closed Arkane Austin, the team behind Redfall, in May 2024. The Lyon studio carried on with Blade, which was revealed at The Game Awards in December 2023 as a single-player game set in Paris.

The Xbox leadership picture is also shifting. Xbox chief operating officer Helen Chiang stepped down after only three months in the role, as reported this week. The news is not directly tied to Arkane, but it adds to a period of uncertainty around Microsoft's game business, which also follows EA's closure of BioWare earlier this month.

Official Dishonored 2 gameplay screenshot
Dishonored 2 is one of Arkane Lyon's best-known games. Image: Bethesda Softworks

What it means for players

The short version: Marvel's Blade is not officially cancelled, but its release now depends on a deal. If a buyer or partner steps in, the game could still come out, possibly with a new publisher. If no agreement is reached, the closure process could move ahead after November 13.

Arkane's older games are not affected by these reports. Dishonored, Dishonored 2, Prey and Deathloop remain available on their existing platforms.

What comes next

The date to watch is November 13. Until then, expect more reporting on potential buyers and on whether Microsoft keeps any role in Blade's release. You can follow the studio through its official Arkane Lyon page.

We will update this story if Microsoft, Arkane or a potential buyer confirms a deal, or if the closure goes ahead.