Arkane Lyon Faces Closure as Its Buyer Deadline Nears
Industry·October 25, 2026

Arkane Lyon, the French studio working on Marvel's Blade, may not make it through the next few weeks. Le Monde reports that Microsoft has until November 13 to find a buyer for the team, and that the search is going badly.
The deadline comes from the Florange Law, a French rule that obliges a company to spend at least three months looking for a buyer before it can shut a site. Microsoft has followed that process, according to the report, but talks have stalled. Worker unions are now trying to buy time. Among their options, the report says, are moving affected staff to other Xbox studios or taking Microsoft to court. Le Monde also says several forms of takeover are being considered.
Blade is still in development. IGN reports the game remains on track for a new reveal in early 2027, with a release in the fourth quarter of 2027. Fans have seen little since the game was first revealed in December 2023, beyond a handful of concept art images. Bloomberg's Jason Schreier has also heard about multiple paths being explored, and he said he would be surprised if the studio is closed.
The studio has a long history behind it. Its first game, Arx Fatalis, came out in 2002, and it later made Dark Messiah of Might and Magic and the Dishonored games, along with Deathloop. Its Texas sibling, Arkane Austin, was shut down in 2024, a year after the critically panned Redfall. Arkane Lyon left the Xbox Games Studios lineup earlier this year, and it now faces a deadline that could decide whether a 27-year-old studio survives.
Reporting based on an external source.