While developer Arkane Lyon continues to work on Marvel’s Blade, which rumors have suggested the studio planned to showcase next year, its fate appears to be relatively out of its hands. A report from last month suggests that the developer was next in line for closure as Xbox continues its “reset” of its first-party studios. According to that report, Microsoft is currently looking for a buyer for the developer, best known for titles like Dishonored 2 and Deathloop, or Arkane Lyon risks closing in mid-November.
Now, according to a new report published by Bloomberg, there are at least three companies that have submitted bids for the developer so far, with Assassin’s Creed developer Ubisoft among the interested parties. The identity of the other parties involved is not yet publicly known; however, Microsoft has yet to accept any of these bids as of yet. According to Bloomberg, reaching a deal would allow the studio to finish its current project.
Arkan Lyon isn’t the only studio under the umbrella to have risked closure; the developer behind the poorly recieved Redfall, Arkane Austin, was closed by Microsoft back in 2024. They are also not the only studio to be at risk as part of the reset, with developers Compulsion Games and Double Fine Productions going independent, while Senua developer Ninja Theory was ultimately closed when potential funding fell through.
Microsoft announced that there would be a restructuring of its gaming division, with newly appointed CEO Asha Sharma sending out an email illustrating a “Reset”. Internally, it is similar to working with the sword of Damocles hanging over your head. While at the time it was announced that 3,200 jobs would ultimately be cut, around 1,332 of those terminations have yet to be carried out. This leaves many employees vulnerable while they work on their projects, unsure if or when they might lose their job.
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