The short version
- Bloomberg reports that Ubisoft has bid for Arkane Lyon, and that at least two other games companies have bid too. None of them has signed anything.
- Microsoft has also reportedly looked at selling the studio to its own management.
- Microsoft's deadline to find a buyer is December 13. If nothing is agreed, about 217 jobs are at risk.
- On November 4, the studio's union published an open letter claiming a 19-month hiring freeze caused the delays Microsoft now points to.
- This is a report, not a deal. Microsoft says only that it's still exploring options.
What Bloomberg reported
Bloomberg's Jason Schreier, who has broken most of the big Xbox studio stories this year, reported on November 3 that Ubisoft is among the bidders for the Lyon studio. Ubisoft is the only name in the report. Schreier says at least two other games companies have also put in offers, which makes at least three in total.
A Microsoft spokesperson told Bloomberg the company is still exploring options ahead of the December deadline. It wouldn't talk about specific talks. Kotaku added that Microsoft reportedly isn't happy with the terms offered so far, so a bid on the table doesn't mean a deal is close.
The other route is a management buyout, where the studio's leaders buy it and run it as an independent company. Xbox has done this before: Double Fine and Compulsion Games both left Microsoft this year in similar ways.
Image: Zerocade
Why Ubisoft makes sense on paper
Ubisoft and Arkane have history. Arkane's 2006 game Dark Messiah of Might and Magic was published by Ubisoft, years before Bethesda's parent ZeniMax bought the studio in 2010. Both companies are also French, which matters in a sale that has to go through French labour rules.
There's the licence question too. Blade is a Marvel game, and Marvel is owned by Disney. Ubisoft has worked on Disney licences before, most recently Star Wars Outlaws, so it already knows how those approvals work.
The odd part is timing. Ubisoft has spent the last two years cutting costs and moving its big brands into a new subsidiary with Tencent. Buying a 217-person studio in the middle of a Marvel game is a big step for a publisher that has been shrinking. Bloomberg doesn't say how much Ubisoft offered or what it would do with Blade.
What the union says
A day after the Bloomberg story, the French games workers' union STJV published an open letter on behalf of Arkane Lyon's staff. Its main claims, which Microsoft hasn't answered publicly:
- Microsoft froze hiring across the group for 19 months, which the union says created the delays and extra costs now being used to justify a closure.
- Arkane Lyon is profitable, "just not profitable enough in Microsoft's eyes."
- Production on Blade is going well, and closing the studio and cancelling the game would probably cost more than finishing it.
- The one-month extension was "a step forward" but "far from enough."
The union also set out demands if the studio is closed or sold: €200,000 severance per worker (about ₹2.2 crore), two years of paid redeployment leave, the same terms for freelancers, a say in choosing any buyer, and a protection fund in case a new owner cuts jobs within 24 months.
Those are the union's claims. Microsoft hasn't confirmed the hiring freeze or given any figures for the studio's finances.
Why the deadline is December 13
Microsoft can't close a French studio the way it closed Arkane Austin in the US. Under France's Florange law, a large company has to look for a buyer before shutting a site, and it has to consult the studio's works council. The original deadline was November 13, and in October Microsoft pushed it back a month. We covered that change, and the law behind it, in our earlier piece on Arkane Lyon's new December deadline.
Image: Arkane Studios / Bethesda, Steam store page
What it means for Blade, and for players
Marvel's Blade was revealed at The Game Awards in December 2023. It still has no release date or platforms. Reports disagree on how far along it is, so a buyer could be getting a nearly finished game or one that still needs years of work.
Whoever buys the studio would most likely need Marvel's approval to carry on with Blade, since the game was signed with Bethesda. None of the reports say whether that has been discussed.
Arkane Lyon's back catalogue isn't affected either way. Microsoft owns the Dishonored and Deathloop brands, and a studio sale doesn't change that. Deathloop is ₹2,499 on Steam in India and Dishonored 2 is ₹1,399, and both are on Game Pass.
The date to watch is December 13. If a buyer is announced before then, expect the first real word on Blade's future with it.
