Xbox seeks partner for Arkane Lyon

Xbox is looking for a partner to help Arkane Lyon finish development of Marvel's Blade, as the French studio faces possible closure. Microsoft has extended the deadline for finding a buyer or partner to support the studio, aiming to prevent job losses among its 217 employees.

Arkane Lyon at risk of closing

Arkane Lyon, known for immersive simulation games, is under threat of closure due to Microsoft’s restructuring. The company had initially planned to shut the studio but was blocked by French labor laws. Microsoft now has until December 13 to find a solution.

Microsoft extends deadline and explores options

Microsoft has extended the deadline for finding a partner to support Arkane Lyon by one month. A representative told PC Gamer the company is exploring options, including financial support, to keep the studio operational during the final stages of Marvel's Blade development.

Xbox restructuring impacts multiple studios

Xbox has laid off more than 1,600 employees as part of a restructuring effort. Other studios, such as Ninja Theory, have closed, while others have gone independent. The new Xbox CEO, Asha Sharma, has expressed similar plans for other studios.

Analyst doubts Arkane Lyon will close

Bloomberg journalist Jason Schreier expressed skepticism about Arkane Lyon closing permanently. He noted that closing a French studio is costly due to labor laws requiring long severance pay, and Xbox is unlikely to bear those expenses.

Union pushes for rehiring or legal action

The union representing Arkane Lyon is urging Microsoft to rehire affected employees at other Xbox studios if no deal is reached. The union also threatens legal action if Microsoft fails to find a solution, citing the studio's strong performance and the limited job market in gaming.

Marvel's Blade development timeline unclear

Marvel's Blade, developed by Arkane Lyon, was initially expected to be revealed in 2021 and released in 2027. It was officially announced in December 2023 with a trailer, but no further details have been provided since. Bethesda’s Todd Howard praised Arkane Lyon’s work but offered no timeline for more updates.