The developer behind Dishonored has less than a month to find a buyer according to a report, or it faces closure as part of Xbox’s sweeping cuts.
Xbox’s sweeping layoffs are set to impact around 3,200 people by the end of June next year, as Microsoft tries to slim down its operations to balance the books.
This so-called ‘reset’ has already affected 1,868 people across two separate waves, with the first in July seeing studios like Double Fine, Compulsion Games, and Undead Labs separate from the company. There are two studios, however, with an uncertain future: Hellblade’s Ninja Theory and Arkane Lyon, the developer behind Deathloop and Dishonored.
Ninja Theory appears to be heading towards closure, after two buyout deals fell through, but Arkane Lyon is more complicated. Under French laws, Xbox management has to consult on any major restructuring with an in-office work council made up of Arkane Lyon staff, so the process is longer and more easily contested.
More importantly for Microsoft, closing the studio will be very expensive, since French labour laws will require them to pay generous compensation packages and benefits. That’s why publishers in general are much more gung-ho about laying off people in the US and other countries with weaker worker protections.
At the time of the initial layoff announcement, Xbox said it had begun ‘required consultation with its works council to review potential strategic options’. Now, thanks to a new report, we know the exact date of when Arkane Lyon could face closure.
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According to French outlet Le Monde, Arkane Lyon has until November 13, 2026 to find a buyer or the studio’s 217 staff members are at risk of being laid off.
A union representative, under the name Simon, said he ‘remains hopeful of saving the studio and its jobs’ and has requested a postponement of the deadline. Speaking to the outlet, he claims ‘several forms of takeover are being considered’.
The representative says they’ve not ruled out challenging a proposed closure if it comes to it either, arguing: ‘Microsoft is looking to part ways with Arkane, even though the studio is doing well, simply to cut costs and boost the short-term profitability of its investments.’
Elsewhere in the report, it’s claimed the studio’s next game, Marvel’s Blade, is ‘nearing the end’ of the production phase. According to a Verge report from earlier this year, the game was internally delayed to late 2027 and is running over budget.
Speaking about the game’s potential cancellation, Simon added: ‘It would be a monumental waste – artistically, humanly, and commercially.’
Arkane Lyon is best known for the Dishonored series, but its last game was Deathloop in 2021. According to the studio, the latter ‘reached’ five million players by February 2023, although actual sales are unknown.
If Marvel’s Blade is close to completion, it seems bizarre that Microsoft wouldn’t just push it over the finish line. However, Blade isn’t exactly as financially bankable as Spider-Man or Wolverine, and with the new Blade movie seemingly stuck in limbo, they may not want to take the risk.
While Arkane Lyon has made great games in the past, we’ve seen little of Marvel’s Blade since it was announced in December 2023, just the brief teaser trailer above.
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