Ubisoft has made an offer to buy Arkane Lyon, the Xbox studio behind Dishonored, Deathloop and the in-development Marvel’s Blade, Bloomberg’s Jason Schreier reported on November 3, citing people familiar with the negotiations. According to the report, at least two other gaming companies have also bid, and Xbox is weighing a sale to the studio’s own management. No deal has been agreed.
We could not read Bloomberg’s article directly, so the details below come from outlets that cite it: VGC, Kotaku, Insider Gaming and Destructoid. It follows our October report that Arkane Lyon had until November 13 to find a buyer.
Dishonored (2012), the series Arkane Lyon is best known for. Image: Bethesda Softworks
Table of Contents
Who is bidding for Arkane Lyon?
Ubisoft is the only bidder named. VGC quotes Schreier as saying “at least two other gaming companies” have also made offers, and Destructoid says Bloomberg’s report doesn’t identify them. Kotaku adds that the terms of the offers are unknown.
Insider Gaming says it has confirmed Ubisoft’s offer on its own. One person with knowledge of the talks told the site that Arkane had interested Ubisoft “for some time”, and that the idea of an offer came up before Arkane’s situation became public over the summer. Insider Gaming says it has asked Xbox and Ubisoft for comment. Ubisoft hasn’t commented on the bid in any of the reports we read.
| Option for Arkane Lyon | What the reports say |
|---|---|
| Sale to Ubisoft | Ubisoft has made an offer (Bloomberg; Insider Gaming says it confirmed this separately) |
| Sale to another company | At least two other gaming companies have bid; they are not named (Bloomberg, via VGC) |
| Management buyout | Xbox is considering selling the studio to its own management (Bloomberg, via VGC and Insider Gaming) |
| Closure | Still possible if no deal is reached (Kotaku, citing Bloomberg) |
Could Arkane Lyon go independent like Double Fine?
A management buyout would make Arkane Lyon independent. VGC and Insider Gaming both compare it to Double Fine and Compulsion Games. Xbox CEO Asha Sharma’s July 6 memo set out that those two studios would become independent again and keep their IP and game catalogs, Game Informer reported. Compulsion’s creative director has since said that Xbox’s spending on games like his was “unsustainable”, as we covered in our story on the South of Midnight director’s comments about Xbox funding.
The same memo left Arkane’s future open. It said the Lyon team had entered France’s required consultation with its works council to “review potential strategic options.” VGC notes that it’s unclear what would happen to Dishonored and Deathloop in a sale.
Deathloop (2021). VGC says it's unclear what would happen to Arkane's games in a sale. Image: Bethesda Softworks
Microsoft’s statement and the deadline
A Microsoft spokesperson told Bloomberg that the company continues to explore options ahead of a December deadline for a decision, according to Kotaku.
That December date doesn’t match the one in the earlier reports. In October, Le Monde reported that the deadline to find a buyer was November 13, PC Gamer reported. A Microsoft representative then told PC Gamer that it had “extended the consultation period by one additional month.” Bloomberg’s report refers to a December deadline, and Microsoft hasn’t publicly given an exact date. Le Monde put the studio’s staff at 217.
Why an Arkane Lyon sale to Ubisoft would be notable
Both companies are based in France, Kotaku points out, and Ubisoft has worked on a Disney-owned license before with Star Wars Outlaws in 2024. Ubisoft has also been cutting costs. Kotaku cites layoffs and restructuring, and VGC points to cancelled projects. In October, Ubisoft announced plans to close Trials studio RedLynx. On the Xbox side, the sale is part of Sharma’s “reset”, which has come alongside reported buyout offers to Xbox staff and falling Xbox revenue last quarter.
For players, the big question is Marvel’s Blade. Arkane Lyon announced it at The Game Awards in 2023, and it’s the game the studio is making now. Destructoid notes that it hasn’t been shown since that debut trailer nearly three years ago.
What’s next
Microsoft says it is still exploring options, and the reports describe the bids as unfinished. Watch for statements from Microsoft, Ubisoft or Arkane, and for news from the French works council consultation, which Microsoft told PC Gamer it is “committed to keeping” informed. We’ll update this story and our earlier Arkane Lyon deadline report when there’s an official announcement.
Sources: Bloomberg (original report, cited via VGC, Kotaku, Insider Gaming and Destructoid), PC Gamer, Game Informer.
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Featured image: Bethesda Softworks
