Microsoft has extended the consultation period surrounding the proposed closure of Arkane Lyon by one month, giving the developer behind Deathloop and Marvel’s Blade additional time while the company explores potential buyers and partners. The extension moves the previously reported November 13 deadline into December, with December 13 now cited as the revised date.
The decision was confirmed by a Microsoft representative in a statement provided directly to PC Gamer. The company said it had extended consultations for another month while considering alternatives, including finding a partner capable of supporting the studio’s remaining development work.
Microsoft described the extension as a limited period rather than an indefinite postponement and said it would continue updating Arkane Lyon’s Works Council throughout the process.
The confirmation follows an October 23 investigation by French newspaper Le Monde, which revealed that Arkane Lyon was facing a November 13 consultation deadline under French employment law. The report identified 217 employees whose jobs could be affected if Microsoft ultimately proceeds with the proposed closure.
Arkane Lyon’s future has been uncertain since Microsoft’s wider Xbox restructuring in July 2026. According to Le Monde, studio management informed employees on July 16 that Microsoft intended to close the developer.
However, French regulations require qualifying companies considering certain workplace closures to undertake a process that includes searching for potential buyers. This has allowed Arkane Lyon’s employee representatives to negotiate alternatives before a final decision is made.
Documents published through the French government’s legal system refer to the proposed permanent cessation of Arkane Lyon’s operations and the potential dismissal of its entire workforce for economic reasons. A separate document indicated that the closure process could begin toward the end of 2026 and continue into early 2027.
Microsoft has emphasized that these documents concern the legally required consultation process and do not establish that the studio’s closure has been finalized.
Employee representatives had been requesting additional time to negotiate redundancy arrangements and investigate possible takeovers. Le Monde reported that several forms of acquisition or restructuring were being considered, although no agreement had been announced.
The additional month is particularly significant for Marvel’s Blade, Arkane Lyon’s upcoming single-player action-adventure game based on the Marvel character. Announced at The Game Awards in December 2023, the project remains in development, but its future is closely tied to the studio’s uncertain ownership.
Microsoft has indicated that it is actively seeking a partner to support the game’s continued development and eventual commercial release. However, the company has not announced a buyer, confirmed a new publishing arrangement, or provided an updated release window.
Arkane Lyon is also known for Dishonored 2 and Deathloop, making its potential closure another significant development in Microsoft’s restructuring of its game development studios.
The uncertainty follows the company’s proposed closure of Ninja Theory, where efforts to transfer the Hellblade developer to new ownership reportedly failed. The wider industry has also experienced substantial workforce reductions, including layoffs affecting more than 70 employees at Supermassive Games.
For Arkane Lyon, the extension provides more time to secure an alternative to closure, but it does not guarantee that the studio or its current workforce will be retained.
The consultation process is now expected to continue into December. Until Microsoft announces a final decision or confirms a new ownership arrangement, the future of Arkane Lyon and Marvel’s Blade remains unresolved.
