Report: Arkane Union Accuses Microsoft of ‘Sabotaging’ Marvel’s Blade With a 19-Month Hiring Freeze

XboxReport: Arkane Union Accuses Microsoft of 'Sabotaging' Marvel's Blade With a 19-Month Hiring Freeze

A French union representing workers at Arkane Lyon alleges that Microsoft sabotaged development of Marvel’s Blade with a 19-month hiring freeze, then used the resulting delays to justify closing the studio, GamesIndustry.biz reports.

In an open letter published November 4, the Syndicat des travailleureuses du jeu vidéo (STJV) said work on Blade is “going fine” and that the game is on track to match the quality Arkane players expect. The union argues the freeze “artificially caused delay and additional cost,” which Microsoft is now allegedly citing as an economic reason to shut the Lyon team down.

“Arkane is profitable. Just not profitable enough for Microsoft,” the STJV wrote. The union also claims that closing the studio at this stage “would probably be more expensive than finishing the game.”

“We want our studio to live on and produce games, we want to finish Blade and release it to the players,” the letter adds, per Kotaku.

What the union wants

  • A say in the buyer: workers want input on who acquires the studio.
  • Two-year protection: a fund to cover staff laid off by any new owner within two years of a sale.
  • If Arkane closes: a redundancy payment of €200,000 (about $223,000) per worker, plus two years of Microsoft-funded redeployment support.

According to the union, 217 staff at Arkane Lyon, along with contractors and freelancers, face losing their jobs if no buyer is found. Microsoft had not responded to the union’s claims at the time of GamesIndustry.biz’s report.

How we got here

Microsoft originally gave Arkane Lyon until November 13 to find a buyer, as we reported last month. That window was later pushed back to December 13, with Microsoft also seeking a partner to help finish Blade. Since then, Ubisoft and two other companies have reportedly made offers for the studio, and Xbox has also discussed a management buyout.

Founded in 1999, Arkane is best known for Dishonored, Prey, and Deathloop. It joined Microsoft through the 2021 ZeniMax acquisition, and Xbox closed Arkane’s Austin studio in 2024. Marvel’s Blade was revealed in 2022 and still has no release date.