Microsoft extends Arkane Lyon ownership search as Blade needs partner
Developing story first seen 3 hours ago
Microsoft has extended Arkane Lyon’s search for a new owner by one month, giving the studio until 13 December 2026 to explore options. The company is also seeking a partner to help complete Marvel’s Blade, the long-running project that has had only one trailer, released almost three years ago.
The consultation deadline was previously 13 November. Microsoft said the extension was defined and that it would keep the Works Council informed; Arkane, known for Dishonored, Prey and Deathloop, was affected by recent Xbox job cuts and studio closures. Journalist Jason Schreier has said several possible paths are being explored and that he would be surprised if the studio closed.
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In short
- Arkane Lyon has until 13 December to find a new owner.
- Microsoft is seeking a partner to help finish Marvel’s Blade.
- The studio is exploring several options after Xbox job cuts.
How this story developed
- 5 minutes ago No deadline change was reported; the update emphasised that outside support may be needed to complete Blade and said Schreier would be surprised if Arkane Lyon closed.
- 9 minutes ago Microsoft gave Arkane Lyon until 13 December 2026 to find a new owner and sought a partner to help finish Marvel’s Blade, while Jason Schreier said several options were under consideration.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Extending the deadline gives Arkane Lyon more time to find a buyer and could preserve jobs, expertise and the studio’s creative identity. Seeking a partner for Blade may also bring the resources and support needed to complete the game while allowing development to continue.
The case against
The extension may only postpone a difficult decision, leaving staff uncertain about their jobs and the studio’s future. Needing outside help to finish Blade could signal that Microsoft is unwilling or unable to provide the sustained support the project requires, and a new partner may bring changes to its direction or working conditions.
Explained simply
Arkane Lyon is a French video game studio best known for making Dishonored and Deathloop. It is part of Microsoft’s Xbox division, which has cut jobs and closed studios in recent years.
Marvel’s Blade is a game based on the Marvel character, a vampire hunter. Arkane Lyon had been developing it, but Microsoft is now looking for another company to help with the work. A Works Council represents employees in discussions with management, including during the consultation over the studio’s future.
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Originally published by Push Square as “Microsoft Gives Dishonored Dev More Time to Find a Buyer, Needs a Partner to Finish Blade”.