The short version
- Arkane Lyon, the French studio behind Dishonored and Deathloop, now has until December 13 to find a buyer or partner. The original deadline was November 13.
- Microsoft confirmed the one-month extension to PC Gamer. It says the closure papers are part of a required process and not a final decision.
- About 217 jobs are at risk, according to France's Le Monde.
- Marvel's Blade is reportedly well along in development. No release date has been announced.
What's changed
When this story broke on October 23, Le Monde reported that Microsoft planned to close Arkane Lyon unless a buyer stepped in by November 13. A few days later, Microsoft told PC Gamer it had extended the consultation period by one month while it explores options, "including finding a partner" to support the studio through the rest of development. It also said it would keep the studio's works council (the elected staff body French companies must consult) informed throughout.
That doesn't save the studio, but it's the most hopeful sign so far. Microsoft specifically pointed to the development work still ahead, which almost certainly means Blade. Bloomberg's Jason Schreier, who has broken many Xbox stories, said he would be surprised if the studio shut down.
Image: Zerocade
Why Microsoft can't just close it
In the US, Xbox has closed studios with little warning, like Arkane Austin, the team behind Redfall, in 2024. France is different. Under the Florange law, a company with at least 1,000 employees that wants to close a site has to look for a buyer first. Arkane Lyon began this consultation with its works council during Xbox's layoff wave in July.
That's also why Arkane Lyon didn't get the quick fix other Xbox studios got. Double Fine, Undead Labs, Compulsion Games and Ninja Theory were all divested or put under new management earlier this year. French law forced a slower, more public process at Lyon.
What we know about Blade
Image: Bethesda Softworks
Marvel's Blade was revealed at The Game Awards on December 7, 2023. Bethesda describes it as a mature, single-player, third-person game. That's a big change for a studio known for first-person games. You play as the vampire hunter Eric Brooks in an original story set in a quarantined part of Paris, where vampires rule the night and the city's people hide indoors.
- Developer: Arkane Lyon. Publisher: Bethesda.
- Game director: Dinga Bakaba, who also directed Deathloop.
- Art director: Sébastien Mitton, of Dishonored and Deathloop.
- Platforms and date: not announced.
Development started around January 2022, when Marvel Games picked Arkane's pitch. Recent reports describe it as quite far along, with 2027 mentioned as a possible window, but Arkane hasn't committed to anything. Earlier, union representatives told Le Monde the game was near the end of production.
Who might buy it
No buyer has been named. The case for one is easy to make. Arkane Lyon has a strong record, from Dishonored (2012) and Dishonored 2 to Deathloop (2021), and a nearly finished Marvel game is far more valuable than a studio between projects. Marvel and Disney may also have a say in where the licence ends up.
Even Arkane's original founder, Raphaël Colantonio, joked on social media about buying it back. It got attention, but there's no sign it was a real offer.
The bigger picture
Image: Zerocade
It's part of a huge reshuffle under Xbox CEO Asha Sharma. About 1,600 jobs have been cut so far, with around 1,600 more reportedly planned before the fiscal year ends. Xbox is focusing on Bethesda's and Activision's biggest series, like Fallout and Call of Duty. Sharma told staff at a town hall that Xbox has "started to return to growth".
It's a rough month for studios in general. EA closed BioWare and cancelled the next Mass Effect, and Sony's Sucker Punch cut 26 jobs despite Ghost of Yōtei's success.
What to watch next
The new date is December 13. Watch for a named buyer or partner, any word from Marvel on Blade's future, and whether Microsoft extends the consultation again. On paper, the extension suggests talks are serious. We'll update this post when there's a decision.
