Microsoft extends consultation period for Arkane Lyon as it continues development on Marvel's Blade

Microsoft has extended the consultation period by a month to find a new owner for Arkane Lyon, while simultaneously progressing with the development of Marvel's Blade. A Microsoft spokesperson affirmed to PC Gamer that this extension is deliberate and the company remains committed to keeping the Works Council updated throughout the process.

Since July, Arkane Studios' Social and Economic Committee has been conversing with Microsoft, following Xbox's announcement in September to divest the studio as part of their ongoing restructuring. The process, originally slated to end on November 13, has been prolonged.

Trade union Printemps & Écologique expressed dissatisfaction, stating negotiations on the redundancy plan are progressing poorly. They criticized the potential divestiture, describing it as contradictory to the financial health of the company that they've been informed about during regular Works Council meetings. Microsoft aims to divest Arkane Lyon to cut costs and enhance the profitability of its short-term investments despite the studio's current success.

Negotiations for the redundancy plan must be tailored to the video game industry, where job security is currently scarce, according to the union. Several potential buyer options are under consideration. An internal report disclosed that the phase for the final shutdown of the company is set to commence at the end of 2026 and persist into the first quarter of 2027.

Microsoft has not commented directly on Le Monde's report but issued a statement to IGN affirming their continued exploration of various options for Arkane as part of the ongoing French consultation process. They emphasized their ongoing communication with the works council and employees, and their active search for a partner to support the next development phase and facilitate the commercialization of the project.