Beloved Game Studio’s Fate Looks Grim after Xbox Abandons It

Microsoft has told Arkane Lyon, the French studio behind Dishonored and the upcoming Marvel’s Blade, that it intends to close it as part of Xbox’s restructuring. The studio’s future remains uncertain while Microsoft searches for a buyer and negotiates with staff representatives, with a purchase deadline set for 13 November.

Unions say talks over a redundancy plan are going poorly and are seeking more time and measures to help affected staff find new work. A union representative says Marvel’s Blade is nearing the end of production, although it was internally delayed until late 2027. Arkane could still be sold or become independent; Bloomberg reporter Jason Schreier says several options to save the studio are being explored.