2 hours ago
10
Published Oct 26, 2026, 12:46 PM EDT
Elijah is a freelance news writer at Polygon. He was an associate editor at The A.V. Club and Paste, and has been featured in outlets like Game Informer, Fanbyte, Unwinnable, and more. He loves media in all forms, from fighting games and horror flicks to slow cinema and visual novels. He's from the Greater Boston area.
Microsoft is giving Arkane Lyon more time to find a buyer
Image: Arkane LyonSign in to your Polygon.com account
The last few months at Xbox Studios have been a bloodbath. Microsoft announced in July that it would be cutting 3,200 jobs from its Xbox division in the coming year and has since made over 1,800 cuts. As part of those layoffs, Xbox also announced it would cut several beloved game studios. While Double Fine, Compulsion Games, and Undead Labs managed to buy back their independence from Xbox, it seems that Hellblade developer Ninja Theory will be shutting down.
Beyond Ninja Theory, Dishonored developer Arkane Lyon seems to be the last major studio that Microsoft is considering closing as part of its ongoing “reset.” Arkane Lyon is based in France, which has stronger labor laws than the U.S. and many other countries, so Xbox must undergo a consultation process to “review potential strategic options” about what to do with the studio.
As per PC Gamer, French outlet Le Monde previously reported that while Xbox intended to shut down Arkane, France’s “Florange Law” requires companies with more than 1,000 employees to seek potential buyers first. Originally, the deadline for Arkane to find a buyer was Nov. 13, 2026, after which Microsoft would seemingly be free to close the studio. Several months into the consultation process, Arkane still does not appear to have found a buyer.
Free sign-up
Get Polygon’s Wishlister newsletter
A weekly cheat sheet to what you’ll eventually love to play. No buying, no commitment — just saving for later.
Sign up freeFree. Unsubscribe anytime.
Thankfully, Microsoft has given this potential deal a bit more time. “We have extended the consultation period by one additional month as we explore options, including finding a partner to support the studio through the development work still ahead,” a Microsoft representative told PC Gamer, referring to Arkane’s active work on Marvel’s Blade. As for the legal documents that seemed to indicate Microsoft will close the studio if it can’t find a buyer, the rep said those were “part of the required consultation process and do not represent a final decision.” Regardless, it seems Arkane will have until at least mid-December to potentially find a new partner.
Additionally, Bloomberg’s Jason Schreier shared some good news on Bluesky. He said “there are multiple paths actively being explored that would save Arkane Lyon,” and thathe’d “be surprised if the studio is shut down.” He explained that shutting down studios is very expensive, particularly because French labor law would require extended severance for laid-off employees.
What is Arkane known for?
Arkane Lyon has created several well-regarded titles over the last decade and a half, including both Dishonored games and the time-bending Deathloop. All three received critical acclaim; in particular, Dishonored 2 is often lauded for its all-time level design. The studio is currently working on Marvel’s Blade, an action game where you play as this titular vampire-killing anti-hero. While we haven't seen gameplay footage yet, union representatives at Arkane told Le Monde that the game is "nearing the end" of development. Hopefully, unlike the many other canceled Blade projects, this one will see the light of day.
English (US) ·