Arkane Lyon faces a proposed closure that puts 217 jobs at risk, but Microsoft says it is still exploring alternatives and has extended consultations over the studio’s future. The company is looking for a partner to support development of Marvel’s Blade, whose completion schedule remains uncertain.
A French labor agreement sets 13 November 2026 as the scheduled end of employee consultations. Microsoft subsequently told PC Gamer that the process had been extended by another month, without specifying an exact revised date in its published statement. Neither the agreement nor that statement confirms an immediate shutdown.
Arkane Lyon’s signed agreement documents a proposed closure
Le Monde reported on 23 October that Arkane Lyon employees were informed on 16 July of Microsoft’s plan to close the French studio. The report says 217 jobs are threatened at the developer known for Dishonored and Deathloop.
An agreement signed on 24 July by Arkane Studios SAS and the representative union Printemps écologique describes the proposed permanent cessation of the company’s activities and associated economic layoffs. It also establishes consultations over possible transfers of all or part of the business to prevent job losses.
The search for alternatives began in July. The agreement records a 16 July discussion about potential buyers and possible offers from employees. On 21 July, ZEMPHI Partners, appointed to assist with the search, presented its methodology to employee representatives.
These details establish that closure is a formal proposal under consideration, rather than an unverified rumor. They do not establish that the studio has already closed or that a final decision has been made.
Microsoft’s extension complicates the November deadline
The July agreement originally identified 16 October as the end of the ordinary consultation period. A suspension during the summer holiday period moved the scheduled conclusion to 13 November.
PC Gamer later obtained a statement from Microsoft confirming an additional month of consultations while the company explores alternatives, including a partner to support work still required on Marvel’s Blade. The publication described this as an extension beyond the previously reported November deadline.
The Microsoft statement does not give an exact replacement date. Although the signed agreement establishes the earlier 13 November milestone, the subsequently announced extension means that date should not be treated as an automatic closure deadline.
Microsoft also said the documents referring to a possible closure were part of the required consultation process and did not represent a final decision. Employee representatives have sought more time for negotiations and the search for a buyer.
A buyer and a development partner could lead to different outcomes
Microsoft told Le Monde that it was examining options for Arkane and looking for a partner to support the next stage of the project and its eventual commercial release. The company has not announced a completed sale or identified a new owner.
A buyer acquiring the studio or part of its operations would not necessarily have the same role as a partner funding or supporting further development of Marvel’s Blade. The distinction matters for the employees and the game: preserving the project would not automatically mean preserving Arkane Lyon in its present form.
The signed agreement specifically allows the consideration of offers covering the whole company or parts of its activities. It requires management to inform employee representatives about offers received and the responses given to potential buyers.
For now, a takeover, another partnership arrangement and the proposed closure remain possibilities rather than confirmed outcomes.
Marvel’s Blade remains in development, with conflicting progress reports
Arkane Lyon announced Marvel’s Blade in December 2023 alongside Bethesda Softworks and Marvel Games. The single-player, third-person action game follows the Marvel vampire hunter through a quarantined section of Paris during a supernatural emergency.
Its production status is disputed. A Printemps écologique representative told Le Monde that the project was approaching the end of production. The union has warned that closing the studio could put years of creative and commercial work at risk.
PC Gamer, however, reports that sources close to Arkane believe Marvel’s Blade still has years of development remaining. Neither assessment provides an independently verified completion schedule.
Microsoft has not announced a release date or officially canceled the game. The company’s search for a partner to support development work still ahead also makes it premature to describe Marvel’s Blade as ready for release.
The studio’s future and the game’s release remain separate questions
The immediate process concerns the future of Arkane Lyon and its workforce. A successful acquisition could preserve some or all of the studio’s operations; another arrangement could allow development to continue under different conditions. No such arrangement has been confirmed.
For players, the unresolved issues are who would complete Marvel’s Blade, whether the current team would remain involved and when the project might reach release.
GTR analysis: The available evidence supports a documented closure proposal, an active search for alternatives and conflicting reports about the game’s progress. It does not support treating 13 November as an automatic shutdown date or declaring Marvel’s Blade canceled.
Unlike EA’s confirmed BioWare closure, Arkane Lyon is still undergoing consultations over potential alternatives. A formal decision, a confirmed partner or a revised consultation timetable would materially change the picture.
Sources: Le Monde — original investigation, 23 October 2026; Arkane Studios — signed consultation agreement, 24 July 2026; PC Gamer — Microsoft statement and independent reporting, 23 October 2026.