Arkane Lyon threatened with closure: 217 jobs at stake ahead of the November 13 deadline
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Xbox's massive restructuring plan continues to have consequences for its studios. Arkane Lyon, developer of Dishonored and Deathloop, finds itself in a particularly uncertain situation today. While Microsoft officially mentions an ongoing consultation, Le Monde claims that the Lyon-based studio is at risk of closure. Arkane Lyon is part of the vast restructuring plan unveiled by Xbox on July 6. In a communication addressed to its employees, Asha Sharma, head of Xbox, announced a "reset" of the business, with approximately 3,200 job cuts planned for the 2027 fiscal year, including around 1,600 immediate ones. Xbox justified this decision by citing business deemed insufficiently profitable, rising costs, and a structure that had become too large. The group also mentioned a historic hardware crisis, as well as a studio portfolio that was too broad in relation to its priorities. This first phase was also set to lead several studios to leave Xbox. Compulsion Games and Double Fine Productions thus became independent, with their franchises, catalogs, and funding for their upcoming projects. Undead Labs also became independent, and State of Decay 3 remains scheduled for Game Pass upon release. In its July announcement, Xbox did not mention a closure for Arkane Lyon. The group indicated that the studio's management would engage in mandatory consultation with its social and economic...
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