Microsoft Gives Dishonored Dev More Time to Find a Buyer, Needs a Partner to Finish Blade
Microsoft has extended Arkane Lyon’s deadline to find a new owner by one month, giving the studio until 13 December 2026 to explore options. The company is also seeking a partner to support development of Marvel’s Blade, raising the possibility that the project may need outside help to be completed.
The consultation period had been due to end on 13 November. Microsoft said the extension was defined and that it would keep the studio’s Works Council informed; Arkane, known for Dishonored and Deathloop, was caught up in recent Xbox job cuts and closures. Journalist Jason Schreier has reported that several options are being explored, and he would be surprised if the studio shut down.
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 was affected by recent Xbox layoffs.
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.
Art Culture Software Technology