As Xbox tries to shed studios, there may a light at the end of the tunnel in store for Arkane Lyon. According to a new report from Bloomberg’s Jason Schreier, multiple companies, including French publisher Ubisoft, have submitted offers to acquire the acclaimed studio behind Dishonored, Deathloop, and the upcoming (at least we hope so) Marvel’s Blade.
Sources familiar with the negotiations revealed that at least two other gaming entities have made bids, while Microsoft has also considered management buyout options to spin the Lyon-based team out as an independent entity. Not unlike what has become of Undead Labs. While terms have not been finalized, a successful acquisition would reportedly allow Arkane Lyon to finish development on Marvel’s Blade, which was first unveiled at The Game Awards in 2023.
A critical deadline in Xbox's sweeping "reset" of studios under it's wing
The bidding comes after months of intense uncertainty for Arkane Lyon. Following the arrival of CEO Asha Sharma earlier this year, Xbox embarked on a sweeping "reset" across its studio portfolio aimed at reining in operational costs.
In July, Microsoft outlined plans to divest five internal studios. While teams like Double Fine and Compulsion Games transitioned toward independence and others secured new homes, Arkane Lyon was placed in an official consultation period under French labor laws to determine its fate.
Reports last month revealed that Arkane Lyon faced a strict mid-November deadline to secure a buyer or face complete closure, putting roughly 217 jobs and the future of Marvel’s Blade at risk.
An Xbox spokesperson confirmed the company is actively exploring options ahead of a December deadline, though Microsoft declined to elaborate on specific negotiations.
Ubisoft actually makes sense
Ubisoft's bid has some geographic logic at least, they are headquartered in France and already have an extensive local infrastructure which would make it easy for them to absorb Arkane Lyon.
Interestingly, it won't be the first major asset Ubisoft has taken off Microsoft's hands. Back in 2023, Microsoft famously offloaded the cloud streaming rights for all current and future Activision Blizzard titles to Ubisoft for 15 years to appease regulators in the UK and close its merger. Securing Arkane Lyon would be the latest instance of Ubisoft swooping in to swipe up pieces of Microsoft's portfolio, if it happens!
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