French union claims Microsoft’s hiring freeze jeopardized Marvel’s Blade and led to studio closure threat

The STJV union representing Arkane Lyon workers alleges that a 19-month hiring freeze imposed by Microsoft disrupted development of Marvel's Blade, causing delays that are now being used as justification for closing the studio. The union argues the game remains on track and that shutting down the studio would cost more than finishing it, calling the move economically irrational. They are demanding worker input in any sale, severance pay, and two years of Microsoft-funded reemployment support.

In November 2026, the French game workers’ union STJV accused Microsoft of undermining development at Arkane Lyon by imposing a 19-month hiring freeze, which the union claims caused delays in Marvel’s Blade that are now being used as justification for closing the studio. The Lyon-based studio, home to 217 full-time employees and numerous contractors, faces potential closure unless a buyer is found by December 13, 2026—a deadline Microsoft reportedly extended from November 13. STJV maintains that Blade remains on track and of high quality, asserting that shutting down the studio would cost more than completing the game, calling the move economically irrational. The union demands worker input in any sale, $223,000 (€200,000) in severance per employee, and two years of Microsoft-funded reemployment support. Arkane Lyon, founded in 1999 and known for Dishonored and Prey, was acquired by Microsoft via the ZeniMax merger in 2021. The Austin studio was shuttered in 2024, and now Lyon is under similar threat. Ubisoft has reportedly entered talks to acquire Arkane Lyon, following an extension of its consultation period with Xbox, as it restructures into six “Creative Houses.” Microsoft has not publicly responded to the union’s claims.