Microsoft has a plan to shut down operations at Arkane Lyon, the French studio responsible for games such as Dishonored and Deathloop, with the possibility of laying off the entire team. The situation threatens 217 jobs, according to an investigation published by the French newspaper Le Monde on Friday (23).
Employees were informed of the proposal on July 16, 2026. A labor agreement signed on July 24, later published on the French government platform Légifrance, confirms the existence of a plan for the definitive shutdown of operations and collective layoffs for economic reasons.
Another document, made publicly available in September, indicates that the closure could begin at the end of 2026 and extend through the first quarter of 2027. The measure, however, has not yet been implemented, and alternatives to preserve the studio are still under discussion.
Microsoft told Le Monde that it continues to evaluate different possibilities during the consultation process provided for under French law. The company also said it was actively seeking a partner to support the next stage of development and commercialization of a studio project.
Closure negotiations reach decisive deadline in November
The consultation process with the Arkane Lyon social and economic committee is scheduled to end on November 13. Before that, negotiations on the worker protection plan have a deadline set for October 30.
Representatives of the Printemps écologique and STJV unions challenge the economic justification presented for the project and advocate extending the deadlines to allow new negotiations with potential buyers.
According to the representatives interviewed by Le Monde, different acquisition alternatives are being considered. The unions are also assessing mobilization measures and a possible legal challenge if the closure proceeds.
The situation also affects the development of Marvel's Blade, a game announced in 2023 and currently being produced by Arkane Lyon. A union representative said that production is at an advanced stage, but the future of the project remains undefined.
