Arkane Lyon, the French studio behind Dishonored and Deathloop, reportedly has until November 13 for a deal that would keep it open. Le Monde reported on October 23 that the consultation process around Microsoft’s proposed closure of the studio ends that day, and that about 217 jobs are at risk if no buyer or partner is found. Microsoft has not announced a closure. In a statement to the paper, it said it is “actively looking for a partner” for the studio’s current project.
The report comes from Le Monde’s Pixels section and was picked up by Gematsu and Insider Gaming. Le Monde’s article is paywalled, so the quotes below are the English translations those two outlets published from the French original.
Deathloop (2021), Arkane Lyon's most recent release. Image: Bethesda Softworks
Table of Contents
What’s confirmed and what’s reported
| Point | Status | Source |
|---|---|---|
| Arkane Lyon entered a legally required consultation with its French works council to “review potential strategic options” | Confirmed by Xbox (July 6, 2026) | Asha Sharma’s memo, via Game Informer |
| Microsoft is looking for a partner for the studio’s project | Microsoft statement | Le Monde |
| The consultation with the works council ends November 13 | Reported | Le Monde, union representative |
| About 217 jobs at risk | Reported | Le Monde |
| Marvel’s Blade is “nearing the end” of production | Union claim | Le Monde |
What Microsoft and the union said about Arkane Lyon
Microsoft told Le Monde it is continuing to “explore different options for Arkane.” Its full statement, as translated by Insider Gaming: “We keep the social and economic committee as well as the employees informed, and are actively looking for a partner to support the next phase of development and enable the commercialization of the project.” Gematsu identifies that project as Marvel’s Blade.
Le Monde spoke to a union delegate it calls “Simon,” a pseudonym used to protect their identity. According to Insider Gaming, Simon said negotiations on the PSE (the French job-protection plan that accompanies large layoffs) have been “going badly” and that Microsoft isn’t giving staff representatives a choice. Gematsu reports that the union is weighing “several forms of takeover.” The union has asked for the deadline to be extended and says there is “still hope to save the studio and its jobs.”
The buyer search falls under France’s Florange law, which requires companies with at least 1,000 employees to look for a buyer before closing a site with large-scale job losses. Gematsu says the search began in mid-summer.
What happens to Marvel’s Blade
Arkane Lyon revealed Marvel’s Blade at The Game Awards in December 2023, and it is the studio’s only announced game. A union representative told Le Monde that the game “is nearing the end” of production and that leaving it unreleased “would be a monumental waste.” The French video game workers’ union STJV said it is proud of the work the team has done and believes the game would succeed if it comes out. Microsoft hasn’t given a release date or platforms.
Dishonored 2 (2016), part of the immersive sim series that made Arkane Lyon's name. Image: Bethesda Softworks
How Arkane Lyon got here: Xbox’s reset
On July 6, Xbox CEO Asha Sharma announced what she called “the most significant restructure in Xbox history”: about 3,200 jobs cut over fiscal year 2027. Compulsion Games and Double Fine would go independent, and Ninja Theory and Undead Labs would move to new owners. “Our business today is not healthy,” Sharma wrote, according to Game Informer. Arkane was the one studio whose future the memo left open. That was because French law requires the consultation to happen before any decision.
This is also the second Arkane studio at risk in two years. Microsoft closed Arkane Austin, the team behind Redfall, in May 2024. Sharma’s memo also pointed to “the most severe hardware crisis” in the industry’s history, and Fortune has since reported that the next-gen Xbox could cost $1,200 to $1,800, and our guide covers everything Microsoft has confirmed about Project Helix. EA’s decision this week to close BioWare and cancel the next Mass Effect shows how tough this year has been for big single-player studios.
For players, what’s at stake is Arkane’s style of immersive sim, from Dishonored to Deathloop, which came out on PlayStation 5 first.
What’s next
The works council consultation is reported to end on November 13. If the union wins an extension, that date could move. A buyer or partner, if Microsoft finds one, could keep the studio and Blade going. If no deal is reached, Insider Gaming says, citing Le Monde, that the 217 jobs would be at risk through a closure. We’ll update this story when Microsoft, Arkane or the union makes an official statement.
Sources: Le Monde (via Gematsu and Insider Gaming), Game Informer, Bethesda.
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Featured image: Bethesda Softworks / Marvel
