The extension follows a request from unions Printemps Écologique and Syndicat des Travailleureuses du Jeu Vidéo, who were reportedly fighting to buy more time for negotiations. Arkane's leadership was reportedly told of Xbox's intention to close the studio on 16th July, but France's Florange Law required a three-month search for a buyer first. Documents published on the French government's website in August referenced plans for the complete cessation of the company's activities and the dismissal of all employees, though a Microsoft spokesperson said these are part of the required consultation process and do not represent a final decision.

The development work in question is Marvel's Blade, which still appears to be under Arkane's purview. Its completion timeline is disputed: members of Printemps Écologique claim the game is almost complete and call it a "monumental waste" not to release it, while a PC Gamer source says it still has years to go. The game has remained something of an enigma since its unveiling in 2023.

Arkane Lyon is one of several first-party studios affected by Xbox CEO Asha Sharma's "reset", which is expected to result in 3,200 job losses. The wider restructuring has already seen over 1,600 layoffs, cuts at Halo Studios and the jettisoning of Double Fine, and a recent report suggests Xbox is planning three more waves of cuts, in November, this month and January.