Xbox reviews offers for Arkane Studios as deadline moves to December

This is a new development in a story we reported earlier: Xbox sets Nov. 13 deadline for Arkane Lyon buyer search.

Bloomberg reported on Nov. 3, 2026 that Xbox and Microsoft had received multiple offers for Arkane Studios as they sought an alternative to closing the company, framing the effort as Xbox and Microsoft trying to find a solution for Arkane instead of shutting it down while Xbox weighed selling the studio to its own management ahead of a December deadline. Xbox had not reached an agreement with any potential buyer as of Nov. 3, 2026, and declined to comment further as it explored its options.

The Bloomberg report said Ubisoft and at least two other gaming companies had submitted bids for Arkane Studios as of Nov. 3, 2026, and Pure Xbox said Ubisoft and at least two other companies provided bids for the studio, with Ubisoft standing as the only bidder publicly named while the other two gaming companies have not made their identities or offer details public. KitGuru said Microsoft had considered options, including selling directly to its management team.

Microsoft extended Arkane’s original negotiation deadline from Nov. 13, 2026, by one month to December 2026, making Dec. 13 the final date for an Arkane Lyon deal, and French labour law requires companies with more than 1,000 staff to search for a buyer for three months before shutting down, a legal requirement Rock Paper Shotgun provided as context for the December deadline facing Arkane Lyon.

Arkane Studios is based in Lyon, France, and is known for Dishonored and Deathloop, and the studio is developing Marvel’s Blade, a superhero game announced at the 2023 The Game Awards, with Arkane’s internal ship date for the game delayed until late 2027. Polygon reported on Nov. 3, 2026 the 2023 The Game Awards announcement of Marvel’s Blade and said Arkane’s internal ship date now targets late 2027.

Marvel’s Blade is expected to be released within the next year or two if Arkane avoids closure and is sold, according to Bloomberg’s Nov. 3, 2026 reporting, and Microsoft has said it is seeking partners to support Arkane in completing development of the game and driving its commercial release, with KuCoin reporting this on Nov. 4, 2026 alongside uncertainty about future development and publishing plans given potential ownership changes at Arkane Lyon.

Arkane was one of five studios Microsoft earmarked for divestment, or selling off studios, earlier in 2026 as part of a wider restructuring effort, and KitGuru said Microsoft had marked Arkane among five studios for divestment during a 2026 restructuring drive while also saying Microsoft was continuing efforts to divest Xbox-owned teams, and Polygon reported that Microsoft intends to divest from Arkane as part of mass layoffs at Xbox and other Microsoft divisions.

In July 2026, Microsoft announced that Double Fine, Undead Labs and Compulsion would leave Xbox and go independent, while Microsoft cut Ninja Theory and it may shut down, and Microsoft laid off thousands of Xbox staff in July 2026, with more cuts in September 2026 and layoffs coming in November 2026 and January 2027, which Rock Paper Shotgun included as part of Microsoft’s sweeping range of cuts affecting Xbox staff.

KuCoin reported on Nov. 4, 2026 that French media Le Monde said Microsoft was seeking new buyers for Arkane Lyon, putting approximately 217 jobs at risk, and Xbox CEO Asha Sharma leads the business restructuring and divestment effort involving Arkane, with KuCoin adding that the future of Arkane Lyon remains undecided and that Microsoft is seeking to divest its French game studio.

Ubisoft reportedly did not have a comment to make on the matter of acquiring Arkane Studios as of Nov. 3, 2026, and Ubisoft is undergoing its own restructuring, having closed studios, laid off employees and canceled projects, so future staffing and planning at Arkane Lyon remain uncertain even if Ubisoft completes the acquisition, which KuCoin added on Nov. 4, 2026 as a caveat about Ubisoft as a potential buyer.

If Microsoft sells Arkane Lyon to its management, it would become an independent developer like Double Fine Productions and Compulsion Games, which Xbox spun off, and KuCoin presented this on Nov. 4, 2026 as the outcome if Microsoft finalizes the management buyout option for Arkane Lyon. Bloomberg is the originating outlet for the acquisition report, cited by Pure Xbox, Rock Paper Shotgun, KitGuru, KuCoin and Polygon, and all five outlets published on Nov. 3, 2026, except KuCoin, which published on Nov. 4, 2026.