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Ubisoft among bidders for Arkane Lyon, the studio behind Marvel's Blade, Bloomberg reports

Published on 2026-11-04

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Ubisoft among bidders for Arkane Lyon, the studio behind Marvel's Blade, Bloomberg reports

Microsoft has reportedly received at least three offers for Arkane Studios, the Lyon-based developer of Dishonored and Deathloop that is currently making Marvel's Blade. Bloomberg's Jason Schreier reported on November 3, 2026, citing people familiar with the talks, that Ubisoft made a bid, as did at least two other unnamed games companies. Xbox has also considered selling the studio to its own management. No deal has been reached and the value of the offers is unknown. Bloomberg says a deal would likely let Arkane finish Marvel's Blade, which is "expected to be released within the next year or two." Treat that timeline with some caution.

Why Microsoft wants to let Arkane go

The story starts on July 6, 2026. That day Xbox CEO Asha Sharma announced the biggest restructuring in the division's history: about 3,200 jobs cut over a year, close to 20% of staff. In her memo, reported by Bloomberg, she wrote that the business "is not healthy". She added that Xbox runs at margins three to ten times lower than comparable companies. The plan also included letting go of five studios. Compulsion Games and Double Fine would become independent again. Undead Labs and Ninja Theory would be sold. For Arkane, Xbox said it would look to sell the studio or spin it out.

Results since then have been mixed. Xbox content chief Matt Booty gave an update in a September memo. Compulsion and Double Fine went independent in August, keeping their IP and getting runway funding. Undead Labs moved to a new publisher. Two separate deals for Ninja Theory fell through, though, and Xbox began consulting on a possible closure. Booty said the Arkane consultation was expected to run through the end of the year.

Arkane's case is different because the studio is in France. In late June, The Verge had already reported that Microsoft was weighing closing the studio and cancelling Blade. Le Monde later reported, as relayed by PC Gamer, that management told staff on July 16 that Xbox intended to close the studio. France's Florange Law, however, requires companies with more than 1,000 employees to look for a buyer before closing a site. Documents published on a French government website on August 10 did refer to shutting down the studio completely and laying off all staff. About 217 jobs are at stake. The consultation deadline was set for November 13. Unions (Printemps Écologique and STJV) asked for more time, and Microsoft extended it by one month, to December 13. A Microsoft representative told PC Gamer the company was exploring options, including finding a partner to support the studio through the rest of development. The representative added that the closure documents are part of the required process and do not represent a final decision.

Microsoft has owned Arkane since buying Bethesda's parent company ZeniMax Media in 2021. Its sister studio, Arkane Austin, was closed in May 2024 after Redfall.

What Bloomberg reported, and who the bidders are

According to Bloomberg, Ubisoft made a bid, as did at least two other games companies. Neither Bloomberg nor the outlets that picked up the story have named the other bidders. Another option on the table is a sale to the studio's management, similar to what happened with Double Fine and Compulsion. Bloomberg says Xbox has not agreed a deal with anyone yet. An Xbox spokesperson said only that the company is exploring options ahead of a December deadline. Ubisoft had no immediate comment.

Ubisoft's interest is a little surprising. It is a fellow French company, but it has had a tough 2026 of its own, with studio closures and hundreds of layoffs. Outlets including ActuGaming and Shacknews pointed out the contradiction.

Marvel's Blade: where does the game stand?

Marvel's Blade was announced with a cinematic trailer at The Game Awards on December 7, 2023. Since then, no release date or platforms have been announced, and a PS5 version, for example, has never been confirmed. The game is still in development with no official schedule. Naturally, there is no trophy or achievement list yet.

Reports disagree on how far along the game is. Bloomberg says a deal would likely let Arkane finish the game, with release expected within one to two years. On October 23, however, PC Gamer cited sources close to the studio who said Blade still had years of development left. Neither estimate is official. The one-to-two-year window also only applies if a deal goes through and the new owner keeps the project as it is. Nothing is guaranteed yet.

How reliable is this?

Bloomberg is the only original source for the bidding story. Jason Schreier is one of the best-sourced reporters covering the industry, and he followed the other Xbox studio exits closely. Many outlets have reported the news (Engadget, Push Square, ActuGaming, Windows Central, KitGuru and others), but they all cite Bloomberg's article, so they are not independent confirmations. Microsoft, Arkane and Ubisoft have confirmed nothing.

The background is on firmer ground, with several sources behind it. Microsoft itself confirmed the consultation, the one-month extension and the search for a partner to finish Blade in its statement to PC Gamer. The Florange Law details and the 217 jobs come from separate reporting by Le Monde. Push Square and Player.One also note that Schreier has said he is confident Arkane will survive under a new owner. That is a reporter's view, not a confirmed fact.

The bottom line

According to Bloomberg, Ubisoft and at least two other companies have bid for Arkane Lyon. The other bidders are unknown, a management buyout is also possible, and nothing has been signed. Microsoft is clearly looking for a partner for the studio, and the French process runs until December 13, 2026. If nothing comes of it, closure is still legally possible. For Marvel's Blade, Bloomberg's one-to-two-year window is good news, but other reporting points to a longer road, and there is still no release date or platform. For now this is serious but unconfirmed reporting, and an official answer may come by mid-December.

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