Microsoft plans to close Arkane Lyon, putting 217 jobs at risk
Microsoft is planning to close French video game developer Arkane Lyon, putting 217 jobs at risk as the company restructures its Xbox business, according to Le Monde.
Employees were informed on July 16 that Microsoft intended to shut the Lyon-based studio, which developed games including Dishonored 2 and Deathloop and is currently working on Marvel’s Blade.
The proposed closure has not yet been finalised. Under French law, large companies planning to close a workplace must search for a buyer for at least three months. Microsoft and Arkane began that process during the summer alongside consultations with employees and negotiations over a redundancy plan.
The consultation with Arkane’s works council is currently due to end on November 13. Trade unions are seeking more time for talks and say several possible forms of takeover are being considered.
Microsoft told Le Monde that it continued to explore options for Arkane and was «actively seeking a partner» to support the next phase of development and commercialisation of the studio’s current project.
Unions challenge Microsoft’s reasons for closure
Documents published through France’s official legal platform refer to the proposed «total and definitive cessation» of Arkane Studios SAS and the subsequent dismissal of its workforce for economic reasons.
A separate document cited by Le Monde says the closure could begin at the end of 2026 and continue through the first quarter of 2027 if the proposal goes ahead.
Arkane’s unions dispute the economic justification. A representative of Printemps Ecologique said employees had previously been given a different picture of the studio’s financial position and accused Microsoft of seeking short-term savings as Xbox changes strategy.
The unions are also seeking measures including opportunities for staff to move to other Microsoft positions and support for employees searching for new work. They have not ruled out challenging the economic grounds for the closure in court or taking industrial action if negotiations fail to progress.
The dispute also leaves uncertainty around Marvel’s Blade, the action-adventure game Arkane announced in December 2023. A union representative told Le Monde that production was relatively advanced and warned that abandoning the project would waste years of work.
Microsoft has not announced the game’s cancellation and says it is looking for a partner to help bring the project to market.
The Lyon studio is the remaining branch of Arkane after Microsoft closed Arkane Austin in Texas in 2024.
