Ubisoft has reportedly joined the race to buy Arkane Lyon, the Dishonored studio, with Xbox weighing offers before a December deadline.
Bloomberg reported that the French publisher is one of the companies that have made offers to buy Arkane from Microsoft.
At least two other games companies have also submitted offers, according to the same report.
No agreement has been reached with any potential buyer, and the sums on the table have not been disclosed.
terms of the offers weren't available, and Xbox has not yet come to an agreement with any potential buyer
An Xbox spokesperson said the company "is exploring options ahead of a December deadline".
A countdown fixed by French labour law
French rules make this deadline harder than most. A company with more than 1000 staff that wants to shut a site must look for a buyer for three months before it can close it completely. Reports on the procedure put a December deadline for a deal.
Last month's reporting cast the stakes as roughly 217 jobs and the future of Marvel's Blade. It described a strict mid-November date by which a buyer had to be found or the studio face full closure.
That date moved. The consultation period was extended from November into December while development on Blade carries on.
Reports said several forms of takeover are being considered.
Xbox's wider retreat
In July, chief Asha Sharma announced 3200 job cuts and the departure of several studios. In the same memo to staff, she also wrote that management was reviewing strategic options for Arkane. The talks sit inside a wider contraction at Xbox.
Arkane was one of five studios divested under her restructuring.
| Studio | Outcome | Detail |
|---|---|---|
| Double Fine | Bought by management | Regained its IP and publishing rights; cut 23 positions |
| Compulsion Games | Bought by management | Regained its IP and publishing rights |
| Undead Labs | Bought by management | Acquired by its studio management |
| Ninja Theory | Proposed for closure | Two sale agreements collapsed; layoffs began |
Studio management acquired three of them: Double Fine, Compulsion Games and Undead Labs. As they spun out, Double Fine and Compulsion regained ownership of their IP and publishing rights. Independence came with a cost at Double Fine, which cut 23 positions soon afterwards.
Ninja Theory shows the alternative. Two sale agreements fell through, the studio was proposed for closure and layoffs began.
A management buyout remains open at Arkane. Xbox has considered selling the studio to its own management, which would make it independent.
Which bidder prevails, and on what terms, is unresolved. So is the shape of any deal: a trade sale, a management buyout or closure are all still in play.
From a Lyon start-up to a contested asset
- 1999Founded in Lyon
Arkane starts life as a French studio.
- 2002Arx Fatalis
Its first role-playing game.
- 2006Dark Messiah
Built for Ubisoft, which still holds the Might and Magic rights.
- 2010ZeniMax buys the studio
Arkane joins Bethesda's parent company.
- 2021Microsoft takes over
Arkane arrives with the 7.5 billion US dollar ZeniMax deal.
- May 2024Austin closes
The Texas branch shut after Redfall flopped.
- July3200 jobs cut
Xbox chief Asha Sharma announces cuts and studio departures.
- 13 DecemberLast date for a deal
Final date under the French buyer-search procedure.
Arkane was founded in Lyon in 1999. Its second game, Dark Messiah of Might and Magic, was developed for Ubisoft in 2006, which still holds the rights to the Might and Magic brand. The link never quite closed: with Ubisoft's consent, a community edition of Dark Messiah with a co-op mode and Linux support is in the works.
ZeniMax Media, Bethesda's parent, bought the studio in 2010. Under Bethesda it made Dishonored in 2012, Dishonored 2 in 2016 and Deathloop, a time-loop shooter, in 2021. Microsoft acquired it in 2021 as part of the 7.5 billion US dollar ZeniMax purchase.
The Austin branch made Prey in 2017 and helped sister studio MachineGames with Wolfenstein: Youngblood. It released the co-op shooter Redfall in 2023, which flopped. Microsoft closed the Texas studio in May 2024.
A buyer with its own restructuring
Ubisoft is reorganising its studios into six Creative Houses. It has announced corporate layoffs five times this year, twice in January, then in March, June and October.
Xbox said it is keeping the works council and employees informed through the consultation. It described the search for a partner in these terms:
actively seeking a partner to support the next phase of development and enable the commercialisation of the project
Marvel's Blade was unveiled at The Game Awards in 2023. Bloomberg reported it is expected within one to two years. A sale could let Arkane finish the game.
Ubisoft declined to comment.
What we know
- Bloomberg reported offers from Ubisoft and at least two other games companies.
- No buyer has been agreed and the offer terms are not known.
- Xbox is exploring options ahead of a December deadline.
- About 217 jobs in Lyon are at risk.
Still unclear
- How much the bidders are offering.
- Whether any deal will be signed.
- Which buyer, if any, will take the studio.
- Whether a management buyout will happen instead.
- Whether the November or the December timetable governs the process.
The timetables in circulation differ. One account had a mid-November cut-off; the later one has the consultation running into December. Both put the decision in a narrow window.
Xbox has described only a December deadline.
