As Microsoft continues to overhaul its first-party Xbox studios, the future of French developer Arkane Lyon is beginning to take shape. According to Bloomberg, at least three gaming companies, including UBISOFT, have submitted acquisition bids to Microsoft, though none have been accepted. With the studio currently developing Marvel's Blade, the outcome could determine whether the highly anticipated game makes it across the finish line.

Arkane Lyon, the studio behind Dishonored 2 and Deathloop, currently employs 217 people.
Microsoft previously began seeking a buyer and extended the negotiation deadline from November 13, 2026, to December 13, 2026, as it looks for a partner capable of supporting the studio through the completion of Marvel's Blade. Bloomberg reported that a successful deal could allow development to continue as planned, with the game potentially launching within the next one to two years. No official release date has been announced.
Microsoft has also reshaped several other Xbox teams in recent months. Double Fine Productions, Compulsion Games and Undead Labs have transitioned to independent operations, with Undead Labs signing deals with other publishers to continue developing State of Decay 3.

Arkane Studios' other U.S.-based team, Arkane Austin, was shut down in 2024 amid Microsoft layoffs and project restructuring. The studio previously developed Prey and Redfall. The identities of the remaining bidders and the terms of their offers have not been disclosed. It also remains unclear whether Microsoft will ultimately sell Arkane Lyon—or how a new owner would handle the development and publishing of Marvel's Blade.
via: Bloomberg