Microsoft has extended the consultation period by one month to seek a new buyer for Arkane Lyon, while development on Marvel’s Blade continues.
A Microsoft representative confirmed to PC Gamer that “this is a defined extension, and we remain committed to keeping the Works Council informed throughout the process.”
Arkane Studios’ Social and Economic Committee has been in consultation with Microsoft since July, when Xbox announced the decision to divest the studio as part of its ongoing reset. This process was originally set to conclude on November 13.
A representative from trade union Printemps Écologique told French publication Le Monde (via Gematsu and IGN) that “negotiations on the redundancy plan are going badly”.
The union rep said the potential divestiture of Arkane Lyon is “in complete contradiction with what we’ve been told in the Works Council for years about the company’s financial situation.”
“Microsoft is looking to divest itself of Arkane, even though the studio is doing well, in order to save money and improve the profitability of its short-term investments.”
“The redundancy plan must be adapted to the video game market where, currently, the prospects for returning to work are extremely limited,” they added.
Le Monde reported that “several forms of takeover are being considered.” An internal report reviewed by the publication stated that “the implementation of the project [for the complete and definitive cessation of the company’s activities] is scheduled to begin at the end of 2026 and should extend into the first quarter of 2027.”
Microsoft hasn’t directly responded to Le Monde’s report, but sent the following statement to IGN:
“We continue to explore different options for Arkane as part of the ongoing French consultation process. We are keeping the works council and employees informed and are actively seeking a partner to support the next phase of development and enable the commercialisation of the project.”