Microsoft extends deadline for Arkane Lyon buyer search to December

Microsoft has extended the mandatory consultation period for the French game development studio Arkane Lyon by one month. The new deadline to find a buyer or a strategic partner is December 13, 2026, moving the previous cutoff of November 13.

The extension aims to provide more time to explore alternatives, including finding a partner to support the remaining development of the upcoming title, Marvel’s Blade. Arkane Lyon, known for titles such as Dishonored and Deathloop, currently employs approximately 217 people whose jobs are at risk if a viable solution is not reached.

The situation is influenced by French labor laws, specifically the Florange Law, which requires companies to actively seek a buyer before proceeding with a permanent shutdown of a site. While internal documents have outlined potential total cessation of activities and mass layoffs, Microsoft representatives stated these are part of the required consultation process and do not constitute a final decision.

This development occurs amidst a broader restructuring within Xbox, which has seen significant job cuts and the divestment of other studios like Double Fine and Undead Labs. Industry insiders have noted that a complete shutdown could be costly due to French labor regulations and the potential loss of significant progress on the Marvel’s Blade project.