As it continues to "explore options".
Xbox has extended Arkane Lyon's consultation period by around a month, as the search for a new owner continues. If one isn't found, the studio will likely be shut down.
Arkane Lyon - the developer behind immersive sims including Dishonored and Deathloop - was one of several first-party studios impacted by Xbox CEO Asha Sharma's sweeping "reset", which will result in 3,200 job losses by the time the process is complete. Arkane's leadership was reportedly informed of Xbox's intention to close the studio on 16th July, but France's Florange Law meant a three-month search for a buyer must first be undertaken.
Last week, unions - Printemps Écologique and Syndicat des Travailleureuses du Jeu Vidéo - were said to be fighting to buy more time for negotiations. And now, as per a new report by Le Monde, Microsoft has agreed to extend the original 13th November deadline to December. If a buyer still isn't found, 217 jobs are at risk.
Documents published on the French government's website in August referenced a plan for "the complete and permanent cessation of the company's activities" and another for the "dismissal of all employees for economic reasons."
A Microsoft representative confirmed the deadline extension to PC Gamer, telling the outlet: "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." That "development work" refers to Marvel's Blade, which seems to still be under Arkane's purview even now.
"This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process," Microsoft added. As for the filings referring to the closure of Arkane and the redundancy of its developers, the company spokesperson said they are a "part of the required consultation process and do not represent a final decision."
According to members of Printemps Ecologique (thanks VGC), Marvel's Blade is almost complete. The union says it would be a "monumental waste" for the game not to be released. However, a PC Gamer source also claimed Marvel's Blade - which has remained something of an enigma since its unveiling back in 2023 - still has years to go until it is finished.
Arkane's possible closure as part of Xbox's massive wave of cuts has already resulted in over 1,600 layoffs as restructuring continues. Sharma's "reset" has also included the jettisoning of beloved Psychonauts developer Double Fine, sweeping job cuts at Halo Studios as it transitions into a support studio, and job losses across various other Xbox-owned studios.
What's more, it seems Microsoft is far from done. According to a recent report, Xbox is planning three more waves of cuts:one this month, another in November, and a third in January.
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