Ubisoft is reportedly among several companies that have made offers to acquire Arkane Lyon, the Xbox-owned studio behind Deathloop and Dishonored, according to a Bloomberg report. The move comes as Xbox continues a sweeping restructuring that has already affected 1,868 people since July, with 3,200 job losses planned by the end of June next year.
Uncertain Future for Arkane Lyon
Arkane Lyon, based in France, is one of two studios with an uncertain future, alongside Ninja Theory, the developer of Hellblade. France's stricter employment laws require Xbox management to consult with an in-office work council made up of employees before any major restructuring. As a result, negotiations to find a buyer have been ongoing, with the deadline recently extended from November to December 13, 2026.
The studio is reportedly close to completion on a new game based on Marvel's Blade. However, it is unclear if the Dishonored or Deathloop intellectual properties would be included in any sale, or what the fate of the Marvel project might be. A buyer may be unwilling to pay for the expensive Marvel licence if it needs to be reacquired.
Ubisoft's Interest and Other Bidders
Ubisoft, also based in France, is one of the companies in contention. The two companies have collaborated before, on 2006's Dark Messiah Of Might And Magic for the Xbox 360. However, Ubisoft has faced financial difficulties and restructured its operations with a new subsidiary last year.
The report does not name other bidders but claims there are 'at least two other gaming companies' in contention. Additionally, Xbox is reportedly considering selling Arkane Lyon to its own management, which would make the studio independent, similar to Double Fine and Compulsion Games.
Potential Outcomes and Challenges
While any funding to secure the studio's future is the primary goal, both paths have downsides. A Ubisoft acquisition does not guarantee Arkane Lyon will work on more Dishonored games, while going independent would likely result in layoffs, as happened with Double Fine, and an uneasy scramble for funding from other publishers.
Arkane Lyon appears to be in a better position than the UK-based Ninja Theory, which is reportedly facing closure after multiple acquisition deals fell through.
