Ubisoft Reportedly Bids for Arkane Lyon as Microsoft Seeks a Buyer for the Dishonored Studio
Microsoft plans to divest Arkane's Lyon studio, which is working on Marvel's Blade. Bloomberg reports at least three bidders, including Ubisoft, as a deadline to avoid closure was pushed to December.
The future of the studio behind Dishonored is still undecided, but it may have found a lifeline. Ubisoft has made an offer to buy Arkane's Lyon studio from Microsoft, Bloomberg reported on November 3, as summarized by Polygon.
How we got here
According to Polygon, Microsoft intends to divest Arkane as part of its mass layoffs across Xbox and other divisions. Because the studio is based in Lyon, France, Microsoft has to follow French labor law, which required it to look for a potential buyer before closing the studio.
That process has been tense. Polygon reports that negotiations over a redundancy plan for employees were reportedly not going well ahead of a November 13 deadline. That deadline has since been extended, and Bloomberg says Xbox is "exploring options" ahead of a new December deadline.
IGN France reported in late October that 217 employees at Arkane Lyon could lose their jobs if no buyer is found, and that the studio's union is pushing Microsoft to rehire affected staff at other Xbox studios if a deal falls through.
Who wants Arkane?
According to Bloomberg's report:
- Ubisoft is one of at least three companies that have submitted bids.
- Xbox is also considering selling the studio to its own management.
- No offer has been accepted yet.
What happens to Marvel's Blade?
Arkane Lyon is developing Marvel's Blade, which was announced at The Game Awards in December 2023 and hasn't been shown in detail since. Polygon previously reported that the game's internal ship date had slipped to late 2027. If Arkane is sold rather than closed, Bloomberg says Blade is "expected to be released within the next year or two."
Why it matters for PC players
Arkane Lyon is responsible for some of the most respected immersive sims of the last decade, including Dishonored, Dishonored 2 and Deathloop – games known for systems-driven design that PC players have long championed. Microsoft already closed Arkane's Austin studio in 2024.
A sale would keep one of the last major immersive-sim teams intact. A closure would end the studio and leave Blade's future unclear. We'll follow the story as Microsoft's December deadline approaches.
