Key Takeaways
- Arkane Lyon workers accuse Microsoft of creating development delays through a 19-month hiring freeze.
- The STJV union says Marvel’s Blade is progressing well despite the reported production difficulties.
- Microsoft is exploring options for Arkane Lyon, including finding a potential buyer for the studio.
- The union is demanding stronger employment protections and compensation if Arkane Lyon closes.
Arkane Lyon workers have accused Microsoft of creating problems during the development of Marvel’s Blade, claiming a 19-month hiring freeze contributed to delays and additional production costs. In an open letter published on November 4, the French video game workers’ union STJV argued that Microsoft is now using those same difficulties to justify closing the studio.
The accusations come as Arkane Lyon faces an uncertain future, with Microsoft reportedly seeking a buyer rather than continuing to operate the studio under its current arrangement. The union maintains that development on Blade is progressing well and that the team wants to complete the project. However, the possibility of closure puts 217 employees at risk, alongside freelancers and contractors working with the studio.
Arkane Union Says Microsoft’s Hiring Freeze Created Problems For Marvel’s Blade
STJV accused Microsoft of contributing to the financial and production difficulties now being used to support the potential closure of Arkane Lyon. The union claims Microsoft maintained a hiring freeze across the group for 19 months, which left the studio with fewer resources and contributed to delays and additional costs during development.
According to the union, Microsoft is now pointing to those same delays and expenses when explaining its decision to separate from the studio. STJV described the situation as a decision that could undermine a game Microsoft had already funded. The union also questioned how Arkane could be treated as a cost center when its previous releases had collectively sold tens of millions of copies.
STJV claims Arkane’s remaining funds are regularly transferred to the wider Microsoft group through a cash-pooling arrangement. Such arrangements allow companies within a larger group to manage their available cash collectively. The union argues that this makes it difficult to assess the studio’s financial position based only on the resources it holds locally.
Arkane Lyon’s situation has been developing since July 2026, when Microsoft began consultations with the studio’s works council over its future. Reports in October indicated that Microsoft was looking for a potential buyer, with around 217 employees facing the possibility of losing their jobs if the studio could not secure a deal.
The consultation period was subsequently extended by one month, moving the reported deadline from November 13 to December 13. Microsoft has been exploring options for the studio, including finding a partner that could support the remaining development work on Blade.
STJV Says Marvel’s Blade Development Is Progressing Despite Studio Uncertainty
Marvel’s Blade was announced in December 2023 by Bethesda Softworks and Marvel Games. The project is being developed by Arkane Lyon as a single-player, third-person action game featuring the Marvel character. The announcement was made during The Game Awards 2023, with the studio confirming its involvement in the project.
The game has received limited public updates since its announcement, leaving much of its development progress unclear to players. The union’s latest comments provide an account of the team’s current assessment, although they do not establish a release date or confirm how much work remains before launch. STJV also argues that closing Arkane at this stage could cost Microsoft more than allowing the team to finish the game. The union says the studio remains profitable, although it believes its financial performance does not meet Microsoft’s expectations. These claims have not been supported by publicly released financial statements from Arkane or Microsoft.
The union is also seeking greater involvement in decisions concerning a possible sale. It wants employee representatives to have a say in selecting a buyer and is calling for a protection fund covering workers who could face redundancies within two years of a takeover. If Arkane Lyon closes instead, STJV is demanding €200,000 in redundancy compensation for each employee, along with two years of Microsoft-funded redeployment support. It has also called for shared resources for training and studio creation, as well as compensation for freelancers whose contracts could be affected.
