Time could be running out for Arkane

Arkane Lyon may soon be facing closure, according to a new report by French site Le Monde, which says a deadline to find a buyer for the studio will land on November 13, at which point Microsoft could close the studio outright. Microsoft has since extended that deadline by a month, however, so it can continue to pursue alternative options.

Arkane Lyon was caught up in this year’s vortex of Xbox layoffs, announced in July, which will see roughly 3,200 people put out of work. Xbox also dumped four studios: Double Fine, Compulsion Games, and Undead Labs all went independent (and almost immediately laid off large numbers of employees) while Hellblade developer Ninja Theory appears to be closing outright. Because Arkane is based in France, Xbox couldn’t just drop the hammer on it. Instead, it began a legally-required consultation process “to review potential strategic options.”

The Le Monde report says that on July 16, 10 days after the Xbox layoffs were announced, Arkane management informed employees that Xbox intended to close the studio. France’s “Florange Law,” however, requires companies with more than 1,000 employees who want to close a facility to undertake a search for a buyer first.

The deadline for that requirement in Arkane’s case is November 13, after which Xbox will presumably be free to close the studio. That option is definitely on the table: The Le Monde report says documents signed in July and published on a French government website on August 10 specifically reference “the plan for the complete and permanent cessation of the company’s activities” and “the subsequent plan for the dismissal of all employees for economic reasons.”

The report also says the Printemps Écologique and the Syndicat des Travailleureuses du Jeu Vidéo (STJV) unions were seeking to have the November consultation deadline extended to allow for redundancy negotiations and the buyer search to continue, and that has now happened.

“We have extended the consultation period by one additional month as we explore options, including finding a partner to support the studio through the development work still ahead,” a Microsoft representative told PC Gamer, referring to the Marvel’s Blade game currently in development at Arkane. “This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process.”

Regarding the documents referencing the planned closure of Arkane should a buyer not be found, the rep said that they “are part of the required consultation process and do not represent a final decision.”

The Le Monde report says 217 people are employed by Arkane. Sources close to the studio say that despite being announced three years ago, at the 2023 Game Awards, Marvel’s Blade still has years to go before development will be complete.