Marvel's Blade Studio Arkane Lyon Races a November 13 Deadline
Arkane Lyon, the French studio behind Dishonored and Deathloop, has until November 13, 2026 to find a new owner or risk being shut down by Microsoft, according to Le Monde. Around 217 jobs are on the line, and union representatives say Marvel's Blade is nearing the end of production.
What the deadline actually means
Staff were told on July 16 that Xbox planned to close the studio. Under French law, a large company that wants to shut down a subsidiary must spend three months looking for a buyer, while consultations with the works council on job cuts run in parallel. Those consultations end on November 13, which is when Microsoft is expected to make its final call.
That date marks the end of a legal process, not a confirmed closure. Microsoft has not announced a shutdown and has not said what happens if no partner steps in.
Two sides, two messages
The Printemps Ecologique union, which represents Arkane staff, says several takeover options are on the table but none has been agreed, and that talks with management are going badly. Workers want the deadline extended, dispute the economic case for closure and have not ruled out legal action or a strike.
Microsoft declined to comment on the Le Monde report but said it is “actively seeking a partner to support the next phase of development” of Marvel's Blade. Notice the focus: the statement is about the game, not about keeping the team together.
Where Marvel's Blade stands
The game was revealed at The Game Awards in December 2023 as a single-player, third-person action title with an original story about Marvel's vampire hunter. No gameplay has been shown publicly and there is still no release window. The union calls a possible cancellation a “monumental” loss after years of work.
Part of a wider wave
Arkane Lyon is one of several Microsoft studios caught up in the 2026 cuts, and the outcomes so far have varied:
| Studio | Known for | Outcome |
|---|---|---|
| Arkane Austin | Prey, Redfall | closed in 2024 after Redfall's launch |
| Undead Labs | State of Decay | spun off as an independent studio |
| Ninja Theory | Hellblade | no deal found, layoffs under way |
| Arkane Lyon | Dishonored, Deathloop | buyer search until November 13 |
Since July, Arkane Lyon has been led by Jerk Gustafsson, co-founder of MachineGames (Wolfenstein, Indiana Jones). Its most recent release is Deathloop from 2021, following Dishonored 2 and Dishonored: Death of the Outsider.
For players, the stakes are simple: a buyer gives Marvel's Blade a realistic path to launch with its original team. Without one, it is unclear who would finish a game that is reportedly almost done. The answer should come in mid-November.
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