Arkane Lyon Faces Closure: Buyer Needed by November

Bad news for all who love Dishonored and Deathloop: Arkane Lyon is reportedly facing imminent closure. The French daily newspaper Le Monde, citing unions Printemps Écologique and STJV, reports that Microsoft is giving the studio only a few more weeks to find a buyer. If unsuccessful, the closure could proceed. This has not been officially confirmed yet.

According to Le Monde, a total of 217 jobs are at stake. Microsoft itself declined to comment in detail but stated that it is exploring „various options for Arkane as part of the ongoing French consultation process“.

Why Does Arkane Lyon Have Until November 13?

This is due to French law. The so-called Florange Law stipulates that companies with more than 1,000 employees must first seek a buyer for three months before they are allowed to close a local subsidiary in France. Therefore, Microsoft cannot actually finalize the closure until November 13, 2026, at the earliest.

According to the report, the unions are playing for time – hoping that an acquisition might still save the jobs. Negotiations to transfer Arkane employees to other Xbox studios have reportedly had little success so far.

How Did It Come to This?

The possibility of closure has been on the table since July 16, 2026. In early July, new Xbox boss Asha Sharma announced massive job cuts. This was followed by studio closures, several thousand employees lost their jobs, and Double Fine, Undead Labs, and Compulsion Games became independent again. Only Ninja Theory and Arkane Lyon remained – Ninja Theory also faces closure after two failed sale attempts. The departure of key personnel also highlights the current turmoil at Xbox: We previously reported that Xbox COO Helen Chiang is leaving the company after only three months.

What Does This Mean for Fans of Dishonored and Deathloop?

Concretely, you don't need to do anything right now – your games will continue to run. But a closure would have consequences: a new Dishonored installment, which many have wished for for years, would become even more unlikely. The future of the team, which also produced the flop Redfall alongside Dishonored, would also be uncertain. If a buyer is found, however, the brand could pass into new hands – whether that's good or bad depends on the new owner.

From our perspective, the situation is serious but not yet decided: the grace period is legally mandated, and so far, there's neither confirmation from Microsoft nor a known interested party. It's likely to remain tense until November 13.