As devastating Xbox “reset” continues, Dishonored studio Arkane Lyon reportedly only has until November to find a new buyer before it’s closed
Arkane Lyon, the studio behind Dishonored and Deathloop, reportedly has until 13 November to find a buyer or face closure. The uncertainty follows Microsoft’s Xbox restructuring and matters because the outcome could affect both the studio’s future and its current project, Marvel’s Blade.
French law requires Microsoft to seek a buyer for three months before closing the studio. The search began this summer after Xbox management informed staff of the possible closure on 16 July; 217 workers could lose their jobs if no deal is reached. Unions say redundancy talks are going badly and are seeking more time, while Microsoft says it is exploring options through the French consultation process. Internal documents reportedly schedule any shutdown to begin at the end of 2026 and continue into early 2027.
In short
- Arkane Lyon reportedly faces a 13 November deadline to find a buyer.
- Closure could put 217 jobs at risk.
- Marvel’s Blade remains part of the uncertainty around the studio.
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The case for
Closing Arkane Lyon if no buyer emerges could be the most responsible way to address a studio that Microsoft no longer considers viable within its plans. A defined timetable may give staff and the company clarity, while the consultation and buyer search offer a chance to preserve the studio if a workable deal can be found.
The case against
Arkane Lyon has a record of making distinctive games, and closing it could discard valuable expertise and disrupt Marvel’s Blade as well as the livelihoods of 217 workers. Unions argue that the sale process and redundancy talks need more time, giving potential buyers a fairer chance to come forward and staff a better prospect of continuity.
Explained simply
Arkane Lyon is a French video game studio known for Dishonored and Deathloop. It is part of Microsoft’s Xbox business, which has been restructuring its operations.
The studio is also working on Marvel’s Blade, a game based on the comic-book character. French law requires Microsoft to look for a buyer for three months before closing the studio, and unions say talks about possible job losses have been difficult.
The outcome could determine whether Arkane Lyon continues under new ownership or closes, affecting its staff and the future of its work.