Arkane Lyon, the original and last remaining branch of Arkane Studios, risks closing down amid Xbox’s new restructuring plans, which have already led to the closure of various studios and the loss of hundreds of jobs, but there might still be hope, courtesy of French law.
A report that comes from Arkane Studios’ sole representative trade union in France states that the company has less than one month to find a new home. Right now, 217 positions are at risk, as Microsoft could close the studio responsible for legendary hits such as Dishonored 1, 2, Deathloop, and the in-development Blade upon reaching the due date. Unfortunately for Microsoft, fortunately for everybody else, it cannot simply do away with Arkane.

As translated from the French publication Le Monde, Microsoft’s 2021 acquisition of Zenimax didn’t relinquish Arkane Lyon from the protection of the “Florange Law”, which requires companies with over one thousand employees to search for a buyer for three months should they seek closures that would entail mass layoffs. According to union representatives, Microsoft began the mandatory search mid-summer, but is yet to find a suitable buyer.
The good news is that there are reportedly various parties interested in taking over Arkane, but we’re yet to see how the talks turn out.
Ex-Kotaku and currently Bloomberg reporter Jason Schreier explained, “My understanding is that there are multiple paths actively being explored that would save Arkane Lyon. Anything can happen during negotiations, but at this point I’d be surprised if the studio is shut down.”
The union representative also explains that Marvel’s Blade is nearing completion. They added that this is a title that, should it see the light of day, would prove a success. Though we’re yet to see anything from Blade, Arkane Lyon’s track record is as impressive as it gets, as the company is responsible for some of the most original and fun takes on the FPS formula that we’ve seen in ages, so there should be little reason to doubt such a report.
If Arkane ends up surviving the ordeal, it’s important to attribute that victory to unions and much-needed regulatory practices. Regardless, this is another harsh reminder of the reality of the gaming industry, especially right after we learned about the merciless closure of BioWare at the hands of EA. At least this time we’re looking at a company that could actually find a way out of this, which would count as two victories in one, considering that would mean Arkane also got freed from the clutches of Microsoft.