Ubisoft reportedly offers to buy Arkane Lyon from Xbox

Ubisoft has made a reported offer to buy Arkane Lyon from Xbox, according to Video Games Chronicle and GamesIndustry.biz.

Bloomberg sources say three or more companies have bid for Arkane Lyon, and Ubisoft is the only named bidder. Jason Schreier said “at least two other gaming companies” are involved, and Video Games Chronicle said several companies made offers. GamesIndustry.biz said Ubisoft is one of three companies in talks, while IGN said the other bidders are not publicly known.

GamesIndustry.biz reported that offer terms were unavailable. IGN said Microsoft has accepted no bids yet. KitGuru and PlayFront said no agreement has been reached.

Video Games Chronicle and KitGuru reported that Xbox is considering selling Arkane Lyon to its own management, which would make the studio independent. The approach would mirror earlier spin-offs of Double Fine and Compulsion Games, studios that GamesIndustry.biz said Xbox sold to management. Spin-outs are sales of studios to their own management.

Arkane Lyon is among five studios identified for divestment under Xbox CEO Asha Sharma’s restructuring, GamesIndustry.biz said. Divestment means selling a studio. The restructuring included layoffs affecting 3,200 employees. KitGuru said Microsoft earmarked Arkane for divestment earlier this year, and said the studio could face closure without a buyer.

GamesIndustry.biz reported that Xbox extended Arkane Lyon’s consultation period from November to December while work on Marvel’s Blade continues. A consultation period is a window in which a company consults staff and their representatives before changes take effect. The extension allows development on the superhero game to proceed, and Xbox is exploring options ahead of a December deadline, the outlet said. An Xbox spokesperson said the company “is exploring options ahead of a December deadline” for Arkane Lyon, and declined further comment.

Marvel’s Blade, announced in 2023, remains in development at Arkane Lyon. IGN said Bloomberg expects the game to arrive within the next year or two; KitGuru said a sale would likely allow Arkane Lyon to complete Marvel’s Blade. KitGuru said the launch will occur within the next few years and said any deal would likely let development continue without interruption. PlayFront said financing and rights depend on the negotiation outcome, and Video Games Chronicle said the game’s future is uncertain while Xbox seeks new owners.

What will happen to Arkane’s other intellectual properties, including Dishonored and Deathloop, is unclear if Xbox sells the studio. IP means intellectual property. Video Games Chronicle said Xbox has allowed other studios to keep their IPs. GamesIndustry.biz said Double Fine and Compulsion Games regained IP and publishing rights after spinning out.

IGN said Arkane Lyon developed Deathloop and Dishonored 2. IGN described Deathloop as a 10-out-of-10 immersive sim and Dishonored 2 as outstanding. An immersive sim is a game genre built around simulated systems and player choice.

IGN said Microsoft closed Arkane Austin in 2024 as part of project cuts and personnel layoffs. The Austin team made Redfall in 2023, a game IGN rated 4 out of 10, and developed Prey and the original Dishonored.

IGN said Xbox has spun out four studios instead of closing them immediately: Double Fine, Compulsion Games, Undead Labs and Ninja Theory. GamesIndustry.biz and PlayFront said Microsoft proposed closing Ninja Theory after two deals collapsed, and that staff layoffs started last month.

GamesIndustry.biz reported that Double Fine reduced its workforce by 23 positions after splitting from Xbox. Both Double Fine and Compulsion Games regained ownership of their IP and publishing rights. The outlet used Double Fine as an example of post-spin-off challenges.

GamesIndustry.biz reported that Ubisoft is restructuring its own studios into six Creative Houses while pursuing the Arkane acquisition. Creative Houses are Ubisoft’s internal studio groups.

Video Games Chronicle said the layoffs and cancellations at Ubisoft-owned studios include a Prince of Persia remake close to launch. The outlet cited this as a reason observers fear what a Ubisoft bid would mean for Arkane, and said independent studios may struggle to secure project funding.