Wednesday, 4 November 2026

Ubisoft reportedly bids to buy Dishonored studio Arkane Lyon from Xbox

Several companies have reportedly offered to buy Arkane Lyon, the Deathloop and Marvel's Blade studio, and Ubisoft is the only bidder named so far.

Key points

  • Ubisoft has reportedly offered to buy Arkane Lyon from Xbox.
  • Several other companies have reportedly bid too; none are named.
  • Xbox is also said to be considering selling the studio to its own management.

Ubisoft has reportedly made an offer to buy Arkane Lyon, the French studio behind Dishonored 2, Deathloop and the upcoming Marvel’s Blade, from Xbox. Neither Microsoft nor Ubisoft has commented, and nothing has been agreed.

The story comes from journalist Jason Schreier. People familiar with the talks told him several companies have bid, with Ubisoft the only one named. A second write-up says at least three firms have submitted offers and that Microsoft has accepted none of them yet.

According to VGC’s account of the scoop, Xbox is also said to be weighing a sale to the studio’s own management, which would make Arkane Lyon independent in the way Double Fine and Compulsion Games became. Such a deal would, according to the report, let the team finish Marvel’s Blade, which is expected within the next year or two. What happens to Dishonored and Deathloop is unclear. Xbox has let some spun-off studios keep their own games.

The sale is part of the wider shake-up Xbox has been carrying out under chief executive Asha Sharma, which has brought layoffs and studio mergers. Arkane’s Austin studio, which made Redfall, was closed in 2024. Ninja Theory, another Xbox studio, is also looking for a buyer after two earlier deals reportedly fell through, and layoffs there began last month.

A Ubisoft purchase would worry some fans. The French publisher is mid-restructuring: its studios have lost staff, and it has cancelled several projects, including a Prince of Persia remake that seemed nearly finished. Independence is not a safe path either: Double Fine cut staff after it went independent, and small studios are struggling to find funding.

There is no date for a decision, and none of the bidders other than Ubisoft has been named.

Noaman Rasheed

Noaman covers gaming and streaming for Tech Prolonged: consoles, PC and mobile platforms, game services and streaming apps, and what they cost in Pakistan.