Arkane Lyon faces closure
Arkane Studios, the French developer behind Dishonored and other games, is reportedly at risk of closing as part of Microsoft's restructuring. The company has reportedly informed employees of plans to shut down the Lyon-based studio, which would result in 217 job losses. Legal delays and previous closures
French labor laws temporarily delayed layoffs at Arkane Lyon, but the studio is now facing closure. This follows the shutdown of Arkane Austin, which developed Prey. The Lyon studio has been responsible for Arx Fatalis, Dark Messiah of Might & Magic, and Dishonored. Microsoft’s restructuring goals
According to Le Monde, Xbox announced on July 16 that the goal was to close Arkane Lyon. This move is reportedly part of Bethesda’s strategy to focus on its own franchises like Elder Scrolls, Wolfenstein, and Fallout. Concerns over ongoing projects
The potential closure has raised concerns, especially regarding the development of Marvel's Blade, which has been in production for years. Unions have criticized the decision, calling it "incoherent" and expressing "stupor" and "great anger." They are urging public support as the consultation period for the closure ends on November 13. Efforts to save the studio
A union delegate from Printemps écologique said Microsoft is exploring ways to acquire or save Arkane. However, the company is reportedly moving forward with the closure despite the studio's current performance, aiming to cut costs and boost short-term profits. The decision may face legal challenges. Microsoft’s official response
Microsoft has not confirmed the closure but stated it is "exploring different options" for Arkane. An internal document suggests the studio’s activities may end by late 2026 or early 2027. The company claims to be keeping employees informed and seeking a partner to continue development. Additional layoffs in the pipeline
Fortune reported that Xbox could announce more layoffs in October, November, and January. The Coalition, responsible for Gears of War: E-Day, could be affected in October, while Arkane is targeted in November. The future of Arkane remains uncertain, especially after previous attempts to save other studios like Ninja Theory failed.
