Microsoft gives Arkane Lyon another month to find a buyer as Blade work continues

Microsoft has extended the deadline for Arkane Lyon to find a new owner by one month. The Dishonored and Deathloop studio now has until December 13, 2026, instead of November 13.

Development on Marvel's Blade is continuing in the meantime.

"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," a Microsoft representative told PC Gamer.

That's a small but real reprieve. If no buyer turns up, the studio is likely to be shut down, and Eurogamer puts the number of jobs at stake at 217. Eurogamer also reports that Xbox agreed to the extension at the union's request.

The search exists because of France's Florange Law, which requires any company with more than 1,000 employees to look for a buyer before closing a facility. Microsoft had announced earlier this year that it was divesting itself of the studio along with several others, and French law required at least three months of searching.

Le Monde reported last week that the studio was looking at "multiple forms of takeover," though nothing has been settled.

Bloomberg's Jason Schreier is cautiously optimistic. "Anything can happen during negotiations, but at this point I'd be surprised if the studio is shut down," he wrote, pointing out that closing a French studio is "VERY expensive" because of labor laws requiring an extended severance period.

For now, the clock runs to mid-December, and Blade is still in development at Arkane Lyon.