Ubisoft among the bidders for Arkane as Xbox looks to sell the studio

Xbox announced a structural reset this summer, prompting divestitures of multiple studios, including Arkane Lyon in France. The studio, known for titles like Dishonored and Deathloop, faces potential closure if no buyer emerges. French law requires consultation before layoffs, giving Arkane temporary protection while Microsoft explores options. A sale could allow the studio to complete Marvel’s Blade, slated for release within the next one to two years.

Ubisoft, headquartered near Lyon, is among the bidders for Arkane Lyon, though financial details of its offer remain undisclosed. The two studios previously collaborated on Dark Messiah of Might & Magic in 2006. Arkane’s management is also considering an independent sale, similar to past divestitures like Double Fine and Undead Labs. Such a deal would transfer ownership to current leadership, preserving the studio’s autonomy.

Arkane Lyon, founded in 1999 and acquired by Zenimax in 2010, has a history of critically acclaimed games including Prey and Dishonored. Its American branch, Arkane Austin, closed in 2024 after Redfall’s release. Without a buyer, Microsoft has shown willingness to dissolve studios unable to secure deals, as seen with Ninja Theory’s reported layoffs. Arkane’s leadership faces pressure to finalize a sale to protect its 3,000 jobs amid Xbox’s broader restructuring.

Reports indicate Arkane Lyon is entertaining multiple bids but no deal has materialized yet. The studio’s future hinges on securing an acquisition, either by Ubisoft or through an independent management buyout. Completion of Marvel’s Blade remains a priority, with the game expected in the coming years. The outcome will determine whether Arkane Lyon continues as an independent entity or faces dissolution under Microsoft’s restructuring plan.