Ubisoft bids for Xbox’s Arkane Lyon, Bloomberg reports

Ubisoft ↗ 5.93% and at least two other gaming companies have made offers to buy Arkane Studios from Microsoft ↗ 6.68%, Bloomberg reported on Tuesday, November 3. The French studio behind Dishonored and the upcoming Marvel's Blade now has a possible way to avoid closure. Citing people familiar with the negotiations, Bloomberg's Jason Schreier reported that Xbox has also weighed selling the studio to its own management. Xbox has not agreed to a deal with anyone.bloomberg.com

No deal yet

Ubisoft is the only bidder named so far. Polygon reported that Microsoft has not accepted any offer, and GamesRadar said the talks are in an early stage and the terms have not been disclosed. An Xbox spokesperson said the company is still exploring options ahead of a December deadline but did not comment on specific negotiations, according to Windows Central.gamesradar.com+2

Insider Gaming said it had independently confirmed Ubisoft's offer. One person told the outlet that Ubisoft had been interested in Arkane "for some time" and had discussed making an offer before the studio's situation became public over the summer. A management buyout would make Arkane independent, the same route Xbox took with Double Fine and Compulsion Games, according to Video Games Chronicle.insider-gaming.com+1

A deadline pushed back

Arkane's future became uncertain after Xbox's July "reset" under CEO Asha Sharma, which brought thousands of layoffs. PC Gamer reported that France's "Florange Law" required Microsoft to look for a buyer before it could close the Lyon studio. The original deadline for that search was November 13. A few weeks before that date, Microsoft extended it by a month to "explore options, including finding a partner to support the studio through the development work still ahead." Windows Central reported that about 217 jobs depend on the outcome.pcgamer.com+1

What it means for Blade

A sale would likely let Arkane finish Marvel's Blade. IGN cited Bloomberg as saying the game is expected to come out "within the next year or two." The game was first announced at The Game Awards in 2023. Microsoft closed Arkane's other studio, in Austin, Texas, in 2024. It is also unclear who would own Arkane's existing games, including Dishonored and Deathloop, after a sale, Video Games Chronicle noted.videogameschronicle.com+1

Ubisoft would be a natural fit in some ways, since both companies are based in France. But PC Gamer pointed out that Ubisoft has had its own financial trouble, layoffs, and studio closures, and called the move a possible case of going from the "frying pan to fire."pcgamer.com