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Arkane Lyon Gets More Time to Find a Partner for Marvel’s Blade

Marvel's Blade key art from the official announcement trailer

A French report put a November 13 deadline on the studio's future. Microsoft has now extended the process by a month and says it is actively looking for a partner to finish Blade.

By CMoney · Oct 23, 2026 12:00 PM ET

Marvel’s Blade developer Arkane Lyon is in a fight for its future, and on October 23 the story moved fast.

First, French newspaper Le Monde reported that the studio faced a November 13 deadline in its consultation process, with about 217 jobs at risk, as summarized by Gematsu. Microsoft told staff in July that it intended to close the studio, and France’s Florange Law requires a company of Microsoft’s size to search for a buyer first. A union representative told Le Monde that “several forms of takeover” are under consideration and that Blade “is nearing the end” of production, calling leaving it unreleased “a monumental waste.”

Microsoft told Le Monde it is “actively seeking a partner to support the next phase of development and enable the commercialization of the project.”

Later that day, Microsoft told PC Gamer it has “extended the consultation period by one additional month as we explore options, including finding a partner to support the studio through the development work still ahead,” per Gematsu’s update. That moves the window to mid-December. Microsoft also said the closure language in July’s consultation documents does not represent a final decision, per Pixel Herald.

Bloomberg’s Jason Schreier added: “My understanding is that there are multiple paths actively being explored that would save Arkane Lyon. Anything can happen during negotiations, but at this point I’d be surprised if the studio is shut down.”

Accounts of how close Blade is differ. Union reps say it is nearing the end of production, while sources close to Arkane told Le Monde there is still significant development ahead, per ConsolePCGaming. GameSpot reports that, per IGN, Blade had been tracking toward a new reveal in early 2027 and a release in late 2027. Blade was revealed at The Game Awards in December 2023 and has not been shown since. No buyer has been named, and Marvel has not commented.

Nobody wants to see another studio in danger, and 217 jobs on the line is serious. But the good news is real: Microsoft bought itself more time, it is openly looking for a partner to finish and release Blade, and one of the most plugged-in reporters in gaming says he would be surprised if Arkane Lyon closes. A game this far along with a name like Blade on it can bring players in. Whether Xbox keeps it, a partner steps in or the studio goes independent, I want to see Blade ship.

Official Marvel’s Blade reveal: watch on X

Sources

Image: Bethesda, Arkane Lyon and Marvel Games

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