In what’s been one of the industry’s worst years in terms of layoffs, a report claimed Arkane Lyon had until November 13th to find a buyer. The Dishonored and Marvel’s Blade developer entered consultation last July when Xbox announced mass layoffs, and it may not have the best outlook.
Fortunately, Bloomberg’s Jason Schreier had some “positive news for a change.” Apparently, “multiple paths” were “actively being explored” for the studio remaining afloat. “Anything can happen during negotiations, but at this point I’d be surprised if the studio is shut down.”
Given that Hellblade developer Ninja Theory has begun consultations and is in very real danger of shutting down, this might not be enough for some. However, Schreier also added one “important piece of context that many people might not realize: Shutting down a game studio is expensive.
“Shutting down a French game studio — thanks to labor laws requiring an extended severance period — is VERY expensive. Xbox doesn’t want to take on those costs.”
Of course, if it chooses to keep Arkane Lyon, one has to wonder whether it’s willing to shoulder development costs on Marvel’s Blade instead. The action-adventure title is allegedly “pretty far along,” and would have been revealed this year with a potential launch next year. While the studio reportedly needed more time, Xbox was unwilling to pay that cost, which makes sense given its current cost-cutting endeavors.
Time will tell, but considering the state of the industry and Xbox, one can only hope for the best and prepare for the worst.
If Marvel’s Blade is re-revealed, it could be at The Game Awards on December 10th. Conveniently enough, it was first announced at the same show in 2023, and is slated to be a third-person title, a first for the studio.

