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Following the broader Xbox Reset initiative announced earlier in 2026, Arkane Lyon is currently at risk of permanent closure. Microsoft has reportedly set a deadline of November 13 for the studio to secure a buyer, failing which the developer of Dishonored and Deathloop faces total shutdown.
The studio's ongoing struggles have already impacted its development pipeline, leading to the cancellation of its previously announced Blade project. Should the search for a new owner prove unsuccessful by the mid-November cutoff, approximately 217 positions are expected to be eliminated.
A French union delegate reports that efforts to find a buyer have been difficult. Under French law, companies with over 1,000 employees must conduct a three-month search for a buyer before closing a business. While the union has requested an extension to negotiate redundancy plans and potentially save the studio, discussions with Microsoft remain challenging.
Microsoft has not provided specific details regarding the situation but confirmed to Le Monde that it is exploring options through the French consultation process. The company stated it is keeping the Social and Economic Committee informed while actively seeking a partner to support future development and the commercial release of its current project.
