Microsoft extended by one month the consultation period to find a buyer or partner for Arkane Lyon, the French studio developing Marvel’s Blade, as the studio remains at risk of closure during a reorganization of the Xbox games division.
Extension shifts original deadline
Sources at GamesIndustry.biz reported the process had been scheduled to end on November 13, 2026, but Microsoft granted an extension while talks continue. A company representative confirmed the delay to PC Gamer and said Microsoft will keep employee representatives informed throughout the process.
Sale considered to avoid shutdown
The situation for Arkane Lyon worsened in July, when Microsoft announced plans to divest five studios amid a restructuring of its gaming operations. Since then, Microsoft has been negotiating with the studio’s Comité Social et Économique, the French body that represents employees.
Le Monde reported that multiple acquisition options are under consideration, but an internal document cited by the paper also lists a full shutdown as a possible outcome. If closure proceeds, the process could begin at the end of 2026 and continue into the first quarter of 2027.
Employee representatives expressed concern. A spokesperson for the Printemps Écologique union told Le Monde that talks about potential layoffs are encountering difficulties and questioned the decision to sell a studio that workers say is delivering solid results. The report states that 217 jobs are at risk.
What this means for Marvel’s Blade
Despite the uncertainty around Arkane Lyon’s future, development on Marvel’s Blade continues. Microsoft told IGN it is evaluating alternatives for the studio and seeking a partner able to support the next phase of production and the game’s commercialization.
The project has not been officially canceled, but its future depends on the outcome of the ongoing negotiations. Announced in 2023, Marvel’s Blade is a third-person action game starring the Marvel vampire hunter and is being developed by Arkane Lyon, the studio behind Dishonored 2 and Deathloop.
Microsoft has not named a buyer and has not clarified how a potential sale would affect development and publishing rights for the game. The extended consultation period gives Arkane Lyon additional time to find a path that would preserve both the studio and Marvel’s Blade.
