Ubisoft Among Bidders for Arkane Lyon as Xbox Prepares to Divest
Ubisoft, along with at least two other firms, has submitted a bid to acquire Arkane Lyon, the French studio behind Dishonored and Marvel’s Blade, as Microsoft seeks to divest the studio amid its Xbox reset. No offer has been accepted yet.
By LAS News Desk · Published 4 Nov 2026, 11:16 WAT
Ubisoft, Xbox and Arkane Lyon
In the wake of Microsoft’s Xbox reset, the company is looking to divest Arkane Lyon, the French developer behind the Dishonored series and the upcoming Marvel’s Blade. According to Bloomberg, Ubisoft has made an offer for the studio, and at least two other companies have also submitted bids. Microsoft has not yet accepted any of the proposals. The deadline for Arkane to find a new owner was originally set for 13 November but was extended. Microsoft is now exploring options ahead of a December deadline, while the studio’s management is also being considered as a potential buyer.
Background
Arkane Lyon was founded in 2009 and has produced several high‑profile titles, including the critically acclaimed Deathloop and Dishonored 2. The studio also runs an Austin, Texas office that was closed in 2024 as part of a broader series of cuts. The Austin team had worked on Redfall, a 2023 co‑op vampire‑hunting game that received mixed reviews. Microsoft’s Xbox reset involves a large‑scale reorganisation of its first‑party studios. Four studios have already been spun out rather than shut down: Double Fine, Compulsion Games, Undead Labs and Ninja Theory. Arkane Lyon’s future is now uncertain as the company seeks a buyer.
Why it matters
The outcome of the sale will affect Arkane’s employees, many of whom face potential redundancies. If a buyer is found, the studio could continue working on Marvel’s Blade, which is expected to release within the next year or two. The decision also signals the broader direction of Microsoft’s strategy for its first‑party studios. For Ubisoft, acquiring Arkane would expand its portfolio of immersive simulation titles and give it a stake in the upcoming Marvel franchise. For other bidders, a purchase would provide a foothold in the European market and access to Arkane’s talent.
What happens next
Microsoft has not yet accepted any offers. The studio’s management is also being considered as a potential buyer, and the deadline for a new home has been extended to a later date. No further details on the timeline or next steps have been released at this time.
Sources
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