Microsoft extends deadline to sell Arkane Lyon, seeks partner for Marvel's Blade

Microsoft has given the embattled Arkane Lyon studio more time to find a new owner and is now looking for a partner to help finish its vampire-slaying game, Marvel's Blade. According to IGN, the tech giant has extended a key deadline by a month, moving it from mid-November to mid-December.

The studio's 217 employees remain at risk of losing their jobs if a buyer isn't secured. A Microsoft representative told PC Gamer they are exploring options, "including finding a partner to support the studio through the development work still ahead." The company is required by French labor law to follow a lengthy consultation process before any closure.

Bloomberg's Jason Schreier offered a sliver of hope, suggesting on BlueSky that he'd be surprised if Arkane Lyon shuts down. He noted that closing a French studio is "VERY expensive" due to severance requirements, and that multiple paths to save the developer are being explored.

Meanwhile, a union representative accused Microsoft of trying to "divest itself of Arkane, even though the studio is doing well, in order to save money." The union is pushing for staff to be relocated to other Xbox studios if a sale falls through and hasn't ruled out legal action.

IGN also reports that Marvel's Blade was previously aiming to be shown off early next year and could launch before the end of 2027. Bethesda's Todd Howard said in June he had seen the game and that the team was doing a "really, really great job."