The Arkane Lyon sale just went from a countdown to a bidding war. Bloomberg’s Jason Schreier reported on November 3 that at least three gaming companies have submitted bids to buy Arkane Lyon — the Dishonored, Deathloop and Marvel’s Blade studio — from Microsoft, and the only bidder named so far is Ubisoft. Insider Gaming says it has independently confirmed Ubisoft’s offer.
Nothing is agreed yet: no terms have leaked, the other two bidders are unknown, and Microsoft is reportedly also weighing selling the studio to its own management, which would make Arkane independent.
All of it is racing a hard deadline — December 13, 2026 — after which closure is still on the table, with at least 217 jobs in Lyon on the line.
Inside the Arkane Lyon Sale
What is known is still fairly narrow. An Xbox spokesperson told Bloomberg the company is exploring options ahead of a December deadline, while Ubisoft had no comment. Reports say Microsoft is not yet satisfied with the proposals it has received, which leaves the outcome genuinely open even as the clock runs down.
Per Insider Gaming’s sourcing, Ubisoft’s interest is not new — the idea of an offer was floated even before Arkane’s divestment became public over the summer. For the background, see our October coverage of the original November 13 deadline.
Why Ubisoft, of All Buyers?
The French fit is hard to miss: both companies are French, and there is history — Ubisoft published Arkane’s Dark Messiah of Might and Magic back in 2006. That shared geography and past working relationship make Ubisoft a more natural landing spot than the headline alone might suggest.
The irony is worth noting, too. Ubisoft is deep in its own restructuring, with layoffs and studio closures of its own this year, which makes it a surprising white knight. But Arkane’s immersive-sim pedigree, built on Dishonored and Deathloop, is exactly the kind of prestige studio Ubisoft has historically championed.
What Happens to Marvel’s Blade
According to Bloomberg, a deal would most likely let Arkane finish Marvel’s Blade without interruption. The game was announced at The Game Awards in December 2023, is set in a quarantined Paris, and has barely been seen since its debut trailer almost three years ago.
What a sale would mean for the Dishonored and Deathloop IP is not addressed in the reporting. When Xbox spun out Double Fine, Compulsion Games and Undead Labs earlier in the reset, those studios kept their IP, but nothing has been confirmed for Arkane.
Part of a Bigger Breakup
Arkane was one of five studios Microsoft earmarked for divestment in July as part of CEO Asha Sharma’s Xbox reset restructure. Double Fine, Compulsion Games and Undead Labs have already gone independent, while Ninja Theory is still hunting for a buyer after two deals reportedly fell through.
Arkane’s original buyer deadline was November 13 under the French consultation process, and Microsoft extended it by a month in October. If December 13 passes with no deal Microsoft likes, the Arkane Lyon sale ends the other way: a closure that erases one of the most respected immersive-sim teams in the industry. That prospect sits alongside the Xbox reset’s leadership shakeout, which has already reshaped the top of the division.
Source: Bloomberg, with Insider Gaming confirming Ubisoft’s offer independently.
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