Time is running out for Arkane Lyon to find a buyer, but Ubisoft could acquire the Marvel’s Blade developer, according to a new report. Arkane was one of several studios that Xbox divested itself of earlier this year, and while most of those developers have since gone on to become indie studios again–except for Ninja Theory, which is expected to be closed after deals fell through–Arkane has found itself in a tough spot as it navigates life after Microsoft.
Bloomberg reported that Ubisoft was in talks with Microsoft to acquire Arkane Lyon and help it finish work on Marvel’s Blade. The report added that Microsoft is also exploring selling Arkane Lyon back to its management, but if plans fall through before a deal can be struck by December, it looks likely the studio will ultimately be shut down. Bloomberg claims Ubisoft is one of three companies that have submitted bids for Arkane Lyon, but it has not yet revealed the identities of the other two bidders.
Arkane Lyon moving to Ubisoft does make sense on paper, as both the developer and the Assassin’s Creed publisher are based in France. At the same time, Ubisoft has embarked on a major restructuring process throughout 2026, setting up new Creative Houses to spearhead development on its biggest franchises and downsizing operations across the globe. Recently, Ubisoft laid off 72 people from its Skull & Bones developer, Ubisoft Singapore, and Trials studio RedLynx might be shut down next.
Marvel’s Blade was announced at The Game Awards in December 2023, and since then, Arkane has gone radio silent about the game’s status. Reports say it’s close to completion and could launch in Q4 2027 if Arkane Lyon can keep working on it under a new publisher.