Arkane Lyon has received a slight reprieve from its looming deadline to find a new buyer, as Microsoft says it is exploring allowing another company to support the developer’s efforts to get Marvel’s Blade over the finish line.
Originally, it was reported that Arkane Lyon had until November 18 to find a new owner or risk the studio being shut down. Microsoft had initially announced that it was divesting itself of the developer–and several others–earlier this year, but under French Law, it was legally required to spend at least three months searching for a new buyer for the studio. Speaking to PC Gamer, a Microsoft representative said that the “consultation period” had been extended by one more month and that it was continuing to “explore options,” such as “finding a partner” to support Arkane Lyon.
Last week, Bloomberg’s Jason Schreier added that he’d be surprised if Arkane Lyon were actually shut down, as doing so would be expensive for Microsoft.
“Despite all the gloomy headlines today, my understanding is that there are multiple paths actively being explored that would save Arkane Lyon. Anything can happen during negotiations, but at this point I’d be surprised if the studio is shut down. Shutting down a game studio is expensive. Shutting down a French game studio–thanks to labor laws requiring an extended severance period–is VERY expensive. Xbox doesn’t want to take on those costs,” Schreier wrote.
If plans do fall through, Arkane Lyon’s union is lobbying Microsoft to re-employ affected workers within Xbox Game Studios, or face court action. “The redundancy plan must be adapted to the video game market where, currently, the prospects for returning to work are extremely limited,” a union representative said to IGN.
After releasing Deathloop, Arkane Lyon revealed at The Game Awards in December 2023 that it was working on Marvel’s Blade. Since that announcement, the studio has kept quiet about progress, showing only a handful of concept art images of Blade taking on vampires in Paris. Reportedly, Marvel’s Blade was set for a new reveal in early 2027, followed by a Q4 2027 launch.
