Ubisoft Among Bidders for Arkane Lyon as Xbox Extends Sale Talks

Ubisoft is reportedly one of three companies in talks to buy Arkane Lyon, the Dishonored and Prey studio that Xbox is trying to divest. The talks come as Xbox extends the French consultation period from November into December, and Arkane keeps working on Marvel's Blade. No agreement has been reached, and the terms of the offers have not been made public.

What was announced

According to Bloomberg, Arkane is accepting multiple bidders, and no deal has come close yet. GamesIndustry.biz reports that sources described Ubisoft as one of three companies in negotiations. Game Developer adds that the details of Ubisoft's bid have not been reported. Sources told Bloomberg that "terms of the offers weren't available, and Xbox has not yet come to an agreement with any potential buyer."

Another route is a sale to the studio's own management. Xbox has done this before with Double Fine, Compulsion Games and Undead Labs, all of which regained their independence. Double Fine has since cut 23 positions shortly after going independent, which shows that a buyout does not guarantee stability. By contrast, Ninja Theory was proposed for closure after two sale agreements fell through, and layoffs there began last month.

Arkane is one of five studios Xbox has divested under CEO Asha Sharma's restructuring, which GamesIndustry.biz says affected about 3,200 employees. A spokesperson said Xbox "is exploring options ahead of a December deadline," while the company has said it is "actively seeking a partner to support the next phase of development." Marvel's Blade, announced in 2023, is the project any new owner would need to finish, and Game Developer notes that the studio's previous Austin branch closed in 2024 after the release of Redfall.

Key details

• Studio: Arkane Lyon, based in Lyon, France, and owned by Xbox through ZeniMax
• Reported bidders: Ubisoft is one of three companies in talks, per Bloomberg
• Other option: A sale to the studio's management, as Xbox did with Double Fine and Compulsion
• Timeline: The consultation period was extended from November to December, and Xbox cites a December deadline
• Project affected: Marvel's Blade, announced in 2023
• Deal status: No agreement reached; terms not disclosed
• Missing or unconfirmed: The terms of Ubisoft's offer, the identities of the other two bidders, and whether Blade would continue under a new owner

What it means for developers

• Studio sales can move quickly. Arkane's situation shows how a divestiture can leave a team waiting for months while its future is decided, so indie studios in similar contracts should keep a contingency plan.
• Management buyouts are a real path, but not a shield. Double Fine, Compulsion and Undead Labs show that spin-outs are possible, yet independence can still bring layoffs when budgets are tight.
• Review change-of-control clauses. If a publisher is restructuring, check what happens to your IP, publishing rights and revenue share if the publisher is sold or closes.
• Consultation rules can buy time. In France, large-scale layoffs require a consultation period with employee representatives, which delays decisions but does not guarantee a buyer.
• Watch the December outcome. How Xbox handles Arkane will likely signal how other divested studios and their projects are treated.

Sources

• GamesIndustry.biz
• Game Developer

Cover image: © Marvel, Arkane Studios.