Arkane Lyon, the Dishonored studio, could close in November if nobody takes on Marvel’s Blade

The future of Arkane Lyon, the French studio behind Dishonored and Deathloop, will be decided in the next few weeks. According to Le Monde, the consultation on its possible closure ends on November 13.

How many jobs are at stake?

About 217. If no buyer or partner turns up by then, the studio could close.

What about Marvel’s Blade?

It’s the studio’s only announced game, revealed at The Game Awards in December 2023. Microsoft told Le Monde it’s actively looking for a partner for the project.

A union representative says the game is close to the end of production and that leaving it unreleased would be a huge waste. Microsoft hasn’t given a release date or platforms.

Why is Microsoft looking for a buyer?

French law. The Florange law requires companies with at least 1,000 employees to look for a buyer before closing a site with large-scale job losses. According to Gematsu, that search started in mid-summer.

How did it get here?

On July 6, 2026, Xbox CEO Asha Sharma announced about 3,200 job cuts for fiscal year 2027. Arkane Lyon was the only studio whose future was left open, precisely because French law requires this consultation.

The union has asked for the deadline to be extended, saying the studio can still be saved.

What has Arkane Lyon made?

• The Dishonored series.
• Deathloop (2021), its latest release.

Microsoft already closed Arkane Austin, the team behind Redfall, in May 2024. If Lyon closes too, it would be the second Arkane studio lost in about two years.

Quick answers

Has Arkane Lyon closed? Not yet. The consultation ends November 13.

Has Marvel’s Blade been cancelled? Not officially. Microsoft is looking for a partner to finish it.

How many jobs are at risk? About 217.

Sources: Gaming Route