THE CRUNCH

The French games union STJV has accused Microsoft of "sabotaging" the development of Marvel's Blade at Arkane Lyon, then using the resulting problems to justify closing the studio. In a statement, the union said work on Blade is "going fine" and shaping up to match Arkane's acclaimed back catalogue, which includes Dishonored, Prey and Deathloop. It alleges that a 19-month hiring ban imposed by Xbox artificially caused delays and extra costs, and that Microsoft now cites those same delays and costs as grounds for closure.

The union argues that shutting Arkane would defy financial logic, since closing the studio today would probably cost more than finishing the game. It also claims Arkane is profitable, "just not profitable enough for Microsoft". Xbox has not responded to the claims at the time of writing.

STJV's demands include giving employees a real say in choosing a potential buyer, a protection fund covering workers laid off by a new owner within two years, and, if the studio closes, a redundancy payment of €200,000 (about $225,000) per employee plus two years of redeployment support. The union currently describes Xbox's offered redundancy package as "outrageously low".

Arkane's future hangs on a sale: Xbox has reportedly taken bids from potential buyers, with Ubisoft said to be among those interested, though nothing has been finalised. The studio's consultation period was extended to December, and if no owner is found the studio will likely be shut down. Arkane joined Microsoft when ZeniMax was acquired in 2021, and the potential closure forms part of Xbox's wider "reset" under new CEO Asha Sharma, which has already seen Double Fine, Compulsion Games and Undead Labs buy their independence.

WHAT HAPPENS NEXT

Arkane's consultation period runs to December. If a buyer is not found by then, the studio will likely be closed, and Xbox has yet to respond to the union's demands.