Microsoft has extended the deadline to find a buyer for Arkane Lyon, a French immersive sim studio, by a month, following a recent report that claimed the studio had until November 13 to find a new owner. The studio's 217 employees are currently at risk of losing their jobs unless a buyer is found. Microsoft is also looking for a partner to support Arkane Lyon through the development work still ahead for Marvel's Blade, a game that was announced in December 2023 and is currently on track for a release in the fourth quarter of 2027.
A Microsoft representative told PC Gamer that the company has extended the consultation period by one additional month as it explores options, including finding a partner to support the studio. Bloomberg journalist Jason Schreier said he'd be surprised if Arkane Lyon ends up being shut down, citing the high costs of shutting down a French game studio due to labor laws requiring an extended severance period. The union representing the studio's employees is pushing for re-employment of affected staff to other studios within Xbox, should Microsoft fail to secure a deal for Arkane Lyon to survive.