Microsoft seeks partner to finish Marvel’s Blade as Arkane gets more time

Microsoft is looking for a development partner to help complete Marvel’s Blade, giving French developer Arkane Lyon another month to explore alternatives to closure as 217 jobs remain at risk.
The company has extended its consultation period with the studio’s employees by one month, moving the previous 13 November deadline to mid-December, according to PC Gamer.
The extension follows reports that Microsoft intended to shut down Arkane Lyon as part of a wider restructuring of its Xbox gaming division.
A Microsoft spokesperson confirmed that the company was considering different options, including bringing in an external partner to support the remaining development of Marvel’s Blade.
The company also stressed that documents outlining the studio’s possible closure were part of a legally required consultation process and did not represent a final decision.
Arkane Lyon employees were informed of the proposed closure on 16 July. However, French legislation requires large companies to explore potential buyers before shutting down a workplace, giving the developer an opportunity to find new ownership.
What happens to Marvel’s Blade?
The future of Marvel’s Blade remains uncertain, although Microsoft has not announced its cancellation.
Unveiled at The Game Awards in December 2023, the single-player, third-person action game follows Marvel’s vampire hunter Blade through a version of Paris.
The project has received few public updates since its announcement. IGN previously reported that the game had been targeting a reveal in early 2027 and a release towards the end of that year before Microsoft’s restructuring plans disrupted development.
Reports also differ over how much work remains. A union representative told French newspaper Le Monde that production was approaching its final stages, while PC Gamer reported that sources familiar with the project believed substantial development was still required.
The search for a partner could allow production to continue under a different arrangement, potentially involving a new investor or owner. No agreement has been announced.
Arkane Lyon, known for Dishonored 2 and Deathloop, is also negotiating employment protections for its workforce. Union representatives have called for additional time and support for employees who could lose their jobs.