Earlier in 2026, Microsoft announced the Xbox Reset, resulting in 1,600 immediate job losses and another 1,600 slated for later cuts, with several studios shut down entirely. Arkane Lyon, known for Dishonored and Deathloop, faces closure by November 13 if no buyer is found. The studio has already canceled the Blade game due to recent layoffs.
A French union delegate reports the buyer search has not progressed well. French law mandates companies with over 1,000 employees seek a buyer for at least three months, a deadline ending November 13. The union has requested an extension to negotiate employee redundancy plans, hoping to save the studio and its workers.
Microsoft declined specifics but stated they are exploring options during the French consultation process, keeping the Social and Economic Committee informed while actively seeking a partner to support development and commercial release.
Source: TechPowerUp News · Summarized by HeadlinesBriefing