Arkane Lyon’s Consultation Period Extended as Ownership Search Continues
- Microsoft extends Arkane Lyon’s consultation period to December, risking 217 jobs if no buyer is found.
- Arkane Lyon, known for Dishonored and Deathloop, faces closure amid Xbox’s overhaul leading to 3,200 layoffs.
- Marvel’s Blade remains in development, but the game’s completion timeline is uncertain.
Xbox has extended Arkane Lyon’s consultation period by approximately one month, as efforts to identify a new owner continue. Should a buyer not be found, the studio may face closure.
Arkane Lyon, the studio behind acclaimed immersive titles such as Dishonored and Deathloop, is one of several first-party studios affected by Xbox CEO Asha Sharma’s extensive restructuring plan, which is expected to result in about 3,200 job losses when finalized. Leadership at Arkane was reportedly notified on July 16th about the potential closure, but France’s Florange Law requires a three-month search for a purchaser before any final decisions can be made.
Last week, labor unions, including Printemps Écologique and Syndicat des Travailleureuses du Jeu Vidéo, were reportedly advocating for additional time to negotiate. According to a recent report by Le Monde, Microsoft has now extended the previous November 13th deadline to December. If a buyer has not emerged by that time, 217 jobs will be at risk.
Documents released on the French government’s website in August outlined plans for “the complete and permanent cessation of the company’s activities” and for the “dismissal of all employees for economic reasons.”
A Microsoft representative confirmed the extension of the consultation period to PC Gamer, stating: “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.” This development work relates to Marvel’s Blade, which remains under Arkane’s management.
“This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process,” Microsoft added. Regarding the filings about Arkane’s potential closure and the redundancy of its developers, the spokesperson clarified that these documents are “part of the required consultation process and do not represent a final decision.”
Members of Printemps Écologique indicated that Marvel’s Blade is nearing completion, asserting it would be a “monumental waste” for the game not to be released. However, a source from PC Gamer suggested that despite its long anticipation since its announcement in 2023, Marvel’s Blade still requires several years of development.
Arkane’s possible shutdown is part of Xbox’s broader restructuring, which has already led to over 1,600 layoffs. Sharma’s “reset” strategy has also involved the discontinuation of operations at Double Fine, significant job losses at Halo Studios as it transitions to a support role, and various redundancies across other Xbox-owned studios.
Additionally, Microsoft appears to have further cuts planned, with reports indicating that Xbox intends to implement three additional waves of layoffs: one this month, another in November, and a third in January.
News Courtesy of Eurogamer
