Microsoft is reportedly planning to close Arkane Lyon, the French studio behind Dishonored and Deathloop, putting 217 jobs at risk, according to French outlet Le Monde. Two trade unions have raised concerns about the proposed closure as negotiations over redundancies continue, with efforts also underway to find a potential buyer for the studio.
According to Le Monde, Arkane management informed employees on July 16 that Microsoft intended to shut down the Lyon-based developer. The proposed closure has prompted opposition from Printemps Écologique and the French Video Game Workers’ Union (STJV), which are seeking more time to negotiate a redundancy plan and explore alternatives.
A union representative identified by Le Monde as Simon said the negotiations were going badly. The unions hope to delay the deadlines to give discussions more time, with several potential takeover arrangements reportedly under consideration.
Microsoft has not confirmed that Arkane Lyon will close. In a statement to Le Monde, the company said, “We continue to explore different options for Arkane as part of the ongoing French consultation process.” Microsoft added that it was keeping employees and the works council informed while actively seeking a partner to support the studio’s next phase of development and help commercialise its project.
Documents cited by Le Monde indicate that the proposed plan involves the complete and permanent cessation of Arkane’s activities, followed by the dismissal of all employees for economic reasons. An internal document reportedly says implementation could begin at the end of 2026 and continue into the first quarter of 2027.
Arkane Lyon is currently developing Marvel’s Blade, an action-adventure game announced in December 2023. According to Simon, production is nearing completion, and the union fears the project could be abandoned if the studio closes. The unions have called the potential loss a major waste of creative work and have urged players to support the studio.
The consultation process was scheduled to reach its official conclusion on November 13, while negotiations over the redundancy plan were due to continue until October 30, according to the report.
Microsoft has not confirmed a final decision on Arkane Lyon’s future.
