Ubisoft reportedly bids to buy Arkane Lyon as Xbox weighs studio sale

Ubisoft has reportedly submitted an offer to acquire Arkane Lyon from Microsoft, potentially giving the Dishonored and Deathloop developer a route away from closure as Xbox continues restructuring its studio portfolio.

Bloomberg reports that Ubisoft is one of at least three gaming companies to have bid for Arkane Lyon. Microsoft has not accepted an offer, while Xbox has also considered allowing the studio’s management to buy the developer and operate independently.

The negotiations come after Microsoft began exploring ways to divest Arkane Lyon as part of wider changes across Xbox. Because the studio is based in France, the process is subject to French employment rules and consultation requirements that complicate a straightforward closure.

An Xbox spokesperson told Bloomberg that the company is “exploring options” ahead of a December deadline but declined to comment on individual bidders. Ubisoft has not publicly confirmed its reported offer or disclosed how much it is willing to pay.

At least two other gaming companies have reportedly submitted bids as well. Their identities have not been disclosed, leaving several possible outcomes on the table while Microsoft decides whether to sell Arkane to an outside company or its existing management.

The studio’s position became increasingly uncertain following Xbox’s wider restructuring earlier this year. Reports suggested Arkane had been working against a deadline to secure a new owner or potentially face closure, putting its employees and current project at risk.

That deadline has since been extended, giving Microsoft additional time to find a workable solution. Arkane Lyon employs more than 200 people and remains one of the teams Microsoft acquired through its purchase of Bethesda parent company ZeniMax Media.

The Lyon studio should not be confused with Arkane Austin, which Microsoft closed in 2024 after the release of Redfall. Arkane Lyon developed Dishonored 2 and Deathloop and is currently working on Marvel’s Blade.

Marvel’s Blade was announced at The Game Awards in December 2023 as a mature, single-player third-person action game starring Marvel’s vampire hunter. Arkane has shared little publicly about the project since its reveal.

Bloomberg reports that Blade is expected to release within the next year or two if development can continue. A successful sale of Arkane Lyon would therefore potentially preserve both the studio and the game rather than forcing Microsoft to shut the team down before development is complete.

Exactly what would happen to the project’s publishing arrangement or intellectual property agreements under new ownership remains unclear. Microsoft, Bethesda and Marvel Games have not announced any change to the game’s status.

Ubisoft’s reported bid provides Arkane Lyon with another possible route forward, but it should not be treated as an acquisition announcement. Microsoft remains in negotiations and could choose another bidder, approve a management-led buyout or pursue a different outcome.

The December deadline means Arkane’s ownership is likely to become clearer relatively soon. Until an agreement is reached, Marvel’s Blade remains in development at Arkane Lyon while Microsoft continues evaluating offers for the studio.