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Microsoft announced plans in July to implement a major restructuring at Xbox, involving over 3,000 layoffs scheduled between July 2026 and 2027. As part of this strategy, the company informed management at Arkane Studios on July 16 of its intent to close the developer.
Due to French labor regulations, Microsoft cannot immediately shutter the Lyon-based studio. Instead, the parties entered a mandatory three-month consultation period to negotiate a job protection plan and seek a potential buyer. According to a report from Le Monde, this search for a purchaser must conclude by Nov. 13.
Union representatives from Printemps Écologique and the French Video Game Workers' Union (STJV) report that negotiations are proceeding poorly. These groups are currently seeking to extend the deadline for both the redundancy discussions and the search for a buyer. Union members have questioned the economic justification for the closure, noting that the studio is performing well, and have not ruled out legal action against Microsoft.
The future of the studio's upcoming title, Marvel's Blade, remains precarious. While the game is reportedly nearing the end of production, it was internally delayed until late 2027. With the potential closure looming, there is uncertainty regarding whether the project will ever be released.
