Time could be running out for Arkane

According to a new report by French site Le Monde, the future of Arkane Lyon may be uncertain as a deadline to find a buyer for the studio approaches on November 13. This deadline was initially set by Microsoft, but was extended by a month to allow for alternative options to be pursued. Arkane Lyon was one of several studios affected by Xbox layoffs in July, which resulted in the loss of around 3,200 jobs.

Other studios affected by the layoffs include Double Fine, Compulsion Games, and Undead Labs, which went independent, and Ninja Theory, which is reportedly closing down. Due to Arkane Lyon's location in France, Microsoft couldn't simply close the studio. Instead, it initiated a legally-required consultation process to consider various strategic options.

According to the report, Arkane Lyon management informed employees in July that Xbox intended to close the studio. However, French law requires companies with over 1,000 employees that wish to close a facility to first search for a buyer. The deadline for this requirement in Arkane Lyon's case is November 13, after which Microsoft may close the studio.

The Le Monde report also mentions that unions were seeking to extend the consultation deadline to allow for redundancy negotiations and buyer search to continue. Microsoft has agreed to extend the consultation period by one additional month to explore options, including finding a partner to support the studio's development work.

Despite being initially announced three years ago at the 2023 Game Awards, Marvel's Blade, a game currently in development at Arkane Lyon, is expected to take years to complete.