Microsoft has prolonged the consultation period for Arkane Lyon as the studio progresses with the development of Marvel's Blade

Microsoft has announced a one-month extension to the consultation period in a bid to identify a new owner for Arkane Lyon, as work on Marvel's Blade progresses.

A Microsoft spokesperson assured PC Gamer that the extension is definite and emphasized a commitment to keeping the Works Council updated during this period.

The Social and Economic Committee of Arkane Studios has been engaging with Microsoft from July onwards, following Xbox's announcement to detach five studios. The original deadline was set for November 13.

A trade union representative from Printemps Écologique informed French newspaper Le Monde (as reported by Gematsu and IGN) that the negotiations concerning the redundancy plan are not progressing smoothly.

The union representative highlighted that the potential sale of Arkane Lyon contradicts previous assurances from the Works Council about the company's financial health.

The individual also pointed out, "Microsoft is intent on divesting Arkane despite its good performance, to cut costs and enhance short-term investment returns."

Furthermore, it was stated, "the redundancy strategy must be adjusted to reflect the current video game industry outlook, where job opportunities are notably scarce."

Le Monde revealed that multiple acquisition proposals are under consideration. The internal document reviewed by the outlet indicated that the cessation of the company's operations is expected to start at late 2026 and continue into early 2027.

Although Microsoft did not directly address the report from Le Monde, they communicated to IGN: "We are exploring various strategies for Arkane during the French consultation, keeping both the works council and employees updated, while actively searching for a partner to advance the development and market the project."