Arkane Lyon might be saved. Ubisoft has made an offer to buy the studio behind Dishonored and Deathloop from Microsoft, and at least two other companies have also bid, according to Bloomberg's Jason Schreier. Arkane Lyon is close to finishing Marvel's Blade, and Microsoft has until December 13 to decide its future. About 217 jobs are on the line.

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Published November 3, 2026. This is a report from people familiar with the talks; no deal has been announced.

Related: Microsoft May Close Arkane Lyon, the Studio Behind Dishonored, With Marvel's Blade Almost Done · The Next Xbox Could Cost Up to $1,800: What We Know About Project Helix's Price

What the report says

  • Ubisoft has bid to buy Arkane Lyon from Xbox, according to Bloomberg.
  • At least two other companies have also made offers. They haven't been named.
  • Microsoft is also reportedly considering selling the studio to its own management, letting it go independent.
  • The terms of the offers aren't known, and it's unclear what would happen to Arkane's games, like Dishonored and Deathloop.
Dishonored key art: Corvo in his skull mask holding a blade, with the Dishonored logo
Dishonored, Arkane Lyon's breakout series. Image: Arkane / Bethesda

How we got here

In October, reports said Microsoft was considering closing Arkane Lyon, part of its Bethesda group, just as the studio was finishing Marvel's Blade. Microsoft later extended its consultation by a month, moving the deadline from November 13 to December 13, 2026. Full background: Microsoft may close Arkane Lyon, the studio making Marvel's Blade.

What it means for Marvel's Blade

A sale is the best-case scenario for Blade. A buyer would most likely want the studio because of a nearly finished game based on a big Marvel character. But Marvel licensing deals are complicated, and any new owner would need Marvel's approval to carry on. Nothing about the game's release has been announced.

Deathloop key art: the two rival assassins Colt and Julianna with the Deathloop logo
Deathloop, Arkane Lyon's last released game. Image: Arkane / Bethesda

Why Ubisoft?

Ubisoft has its own money troubles, so a big purchase is surprising. But Arkane Lyon is a French studio, like Ubisoft, with a proven track record in single-player action games, and buying a team that's almost done with a Marvel game is a faster route to a release than starting one from scratch.

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A rough season for studios

This comes in a brutal stretch for game developers: EA's moves at BioWare and the shutdown of Yakuza creator Toshihiro Nagoshi's studio. Arkane Lyon finding a buyer would be rare good news.

My take

Three bidders is a very good sign. It means Arkane Lyon has real value, and the studio is far more likely to survive than to close. Whether it ends up at Ubisoft, another company or independent, the most important thing is that Blade gets finished and those 217 people keep their jobs. We'll update this when Microsoft decides.

Sources

  1. Windows Central: Ubisoft among multiple bidders for Arkane Lyon windowscentral.com
  2. VGC: Ubisoft has reportedly offered to buy Arkane Lyon videogameschronicle.com
  3. GamesRadar+: Ubisoft reportedly among studios offering to buy Arkane gamesradar.com
  4. Kotaku: Ubisoft could swoop in to save Arkane kotaku.com

Written by the WIZY creator

A lifelong gamer and Warhammer painter from Calgary, Canada, and the maker of the Crusade Journal and the WIZY RPG game. I write about games, hardware, Warhammer and crypto in plain English, and I check every fact against its source.