Ubisoft among bidders for Xbox’s Arkane Lyon studio

Ubisoft and at least two other companies have submitted bids for Arkane Lyon, the French studio Microsoft’s Xbox division has been trying to sell or close, Bloomberg reported Tuesday, citing people familiar with the negotiations.

The report, summarized by Pure Xbox, said Xbox has not yet reached an agreement with any potential buyer. Only Ubisoft was named. Bloomberg also reported that Xbox has weighed selling the studio to its own management.

A spokesperson for Xbox told Bloomberg the company is exploring options ahead of a December deadline and declined to comment further.

The sale of Arkane Lyon was trending in Canada on Google Trends on Tuesday evening, among the top searches for the country.

Deadline pushed back

The studio, best known for the Dishonored series and Deathloop, joined Microsoft through its 2021 acquisition of ZeniMax Media, the parent of Bethesda. It was marked for sale or closure in Xbox’s reset of its studios in July, according to Kotaku.

French outlet Le Monde reported on Oct. 23 that the studio faced a Nov. 13 cut-off, the end of a consultation period required under French labour law before a closure. Kotaku, which cited Le Monde and the site Gematsu, said French law obliges companies of a certain size to try to find a buyer before mass layoffs or a shutdown.

On Oct. 26, a Microsoft representative told PC Gamer the company had extended the consultation period by one month. “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,” the representative said, according to Kotaku’s update.

Marvel’s Blade at stake

The studio’s best-known project in development is Marvel’s Blade, first announced at The Game Awards in 2023. Union representatives told Le Monde the game is “nearing the end” of development and that leaving it unfinished would be a “monumental waste,” Kotaku reported. Bloomberg said the game is expected to release within the next year or two but could be in jeopardy if the studio closes.

Kotaku also reported that Xbox had wanted to cancel the game. Arkane founder Raphael Colantonio has asked how much it would cost to buy the studio back from Xbox, the outlet said.

Arkane Austin, the company’s other studio, was shut down in 2024.

What it means for players

For Canadian players, the outcome will decide whether Blade, a Marvel action game, ships at all, and on which platforms. A buyer such as Ubisoft could change where the game is released, though no such plans have been reported. Xbox has not said what it would do with the game if the sale does not go ahead.

The sale talks come as Bethesda, Xbox’s publishing arm, continues work on other projects. Earlier this week it named its next Elder Scrolls game, as Canada News Media reported. Console pricing is also a live issue here, after Canada’s 50 per cent tariff on game consoles and phones took effect in September.

This story is developing. Bloomberg’s original report was not read directly by Canada News Media; details are attributed to Pure Xbox’s summary of it and to Kotaku’s reporting. Neither Microsoft nor Ubisoft has confirmed a deal.

If you find reporting like this useful, consider supporting Canada News Media, an independent Canadian newsroom with no corporate parent.

Sources: Bloomberg via Pure Xbox; Kotaku; Le Monde via Kotaku; PC Gamer via Kotaku.