French game workers’ union STJV has accused Microsoft of harming development on Marvel’s Blade through a 19-month hiring freeze at Arkane Lyon. The union made the allegation while the Dishonored 2 and Deathloop developer faces a possible shutdown following an Xbox restructuring.
STJV, which represents workers at the French studio, said Blade’s development had been progressing satisfactorily before the staffing restrictions added delays and costs, as first reported by GameSpot. The union described Microsoft’s handling of the project as “sabotaging” its development.
Union says closure could cost more than finishing Blade
The union argued that Arkane Lyon is profitable and that closing it could ultimately cost Microsoft more than allowing the team to complete Marvel’s Blade. STJV said Microsoft was seeking maximum profit optimization and characterized the studio as “not profitable enough for Microsoft.”
That claim puts fresh pressure on Microsoft’s Xbox business, which has already closed one Arkane studio. Microsoft shut Arkane Austin in 2024, ending the team behind Prey and Redfall. Arkane Lyon’s possible loss would remove another established developer from the company’s European studio network while a major licensed game remains in production.
Blade was announced by Bethesda and Arkane Lyon at The Game Awards in 2023. Since then, public material has been limited to official concept art showing the game’s Paris setting. The project is an important test for Arkane Lyon, whose previous games built a reputation around immersive action systems and tightly designed worlds.
Arkane Lyon remains in a consultation process
The studio has been in a legally required consultation period tied to the Xbox restructuring. Reports say that period was extended by one month to give potential buyers more time to make a deal, with three companies, including Ubisoft, said to have submitted acquisition bids.
Microsoft has not publicly confirmed that the hiring freeze caused Blade’s reported delays. Arkane Lyon’s fate also remains unresolved: no buyer has been selected publicly, Microsoft has not confirmed a closure decision, and Blade still has no announced release date, development update, or confirmed platforms.
This article was produced with AI assistance from multi-source reporting and is published under our editorial standards.
