Microsoft has extended the consultation period for Arkane Lyon, giving the studio an additional month to explore alternatives to closure. The extension arrives just days after reports indicated that negotiations were nearing an end, with the studio’s fate expected to be decided by mid‑November.
Earlier this year, Arkane Lyon was included in the list of studios Microsoft was looking to divest from, putting the future of the team and its licensed Marvel’s Blade project at risk. Shutting down a French studio carries significant financial penalties due to local labour laws, which has been one of the factors keeping Arkane’s options open.
Speaking to PCGamer, a Microsoft representative confirmed the extended timeline, saying the company is “exploring options, including finding a partner to support the studio through the development work still ahead”. They added that documents referencing a potential closure are part of the required consultation process and “do not represent a final decision”. The Works Council will continue to be updated throughout the extended period.
Industry sources have maintained that Arkane Lyon still has multiple viable paths forward, including a potential move to a new publisher or an independent transition. Bloomberg’s Jason Schreier previously said he would be “surprised” if the studio ultimately shut down, and Microsoft’s decision to extend talks suggests that closure is not the preferred outcome.
KitGuru Says: The extension is a positive sign for Arkane Lyon, particularly with Blade still deep in development. With another month to negotiate, there’s now a better chance the studio can secure a future outside of Microsoft.
