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Microsoft reportedly plans to close Arkane Lyon — Marvel's Blade's future is unclear

217 jobs are at risk at the Dishonored studio. Consultations end on November 13, and Microsoft says it is looking for a partner to finish Blade.

Oct 24, 2026 · Faaigest editorial team

Microsoft plans to close Arkane Lyon, the French studio behind Dishonored and Deathloop, if no buyer is found, according to documents seen by Le Monde. The studio is currently making Marvel's Blade.

The timeline

Employees were reportedly told in July that a closure was planned. Consultations on the plan end on November 13, 2026 — which is not a confirmed shutdown date. Under French law Microsoft must first look for a buyer; if none is found, the closure would run from the end of 2026 into early 2027. 217 jobs are at risk.

What about Blade?

A union representative says Blade is nearing the end of production and called the idea of it never releasing a "monumental waste". Microsoft told Le Monde it is still exploring options and is actively looking for a partner to help finish the game and bring it to market. Blade has not been cancelled.

Unions have accused Microsoft of causing the delays it now cites with a 19-month hiring freeze, and PC Gamer reports that Ubisoft is interested in buying the studio.

Marvel's Blade — announcement trailer (The Game Awards 2023)

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