Marvel's Blade Is 'Near the End of Production', but Its Studio's Future Is Not

In December 2023, a trailer at The Game Awards showed night falling over Paris and the one man its vampires fear: Marvel's daywalker, Blade. The studio behind it was Arkane Lyon, maker of Dishonored and Deathloop. Nearly three years later, the game may be close to finished, but whether it ever comes out now depends on a business decision rather than a creative one.

In July 2026, as part of Xbox's restructuring, Microsoft began a legally required consultation in France about the future of Arkane Lyon. Unions say Marvel's Blade is "rather near the end" of production. Microsoft says it is "exploring options, including finding a partner" to support the studio through the remaining development. In late October, that process was extended by one month, pushing the decision past the original mid-November deadline.

What Blade is

Here is what has been confirmed about the game itself:

• Revealed: at The Game Awards on December 7, 2023, with a cinematic trailer.
• Developer: Arkane Studios, led by its French team, Arkane Lyon, which began early work by January 2022.
• Publisher: Bethesda Softworks, part of Xbox.
• Setting: a quarantine zone in central Paris, where vampires rule the night.
• Hero: Eric Brooks, better known as Blade, a dhampir: half human, half vampire.
• Genre: a narrative-driven, single-player, third-person action-adventure, a big change for a studio known for first-person games.
• Team leads: creative director Dinga Bakaba, co-creative and art director Sebastien Mitton, and campaign director Dana Nightingale, who designed Deathloop's campaign.

Platforms and a release window have not been officially announced.

Why the studio is at risk

In July 2026, Xbox announced deep cuts, including large-scale job losses and the sale or closure of several studios. Arkane Lyon was placed on the list of studios Microsoft wanted to divest. Under France's Florange law, a large company planning to close a site must first spend time looking for a buyer, and must consult the studio's works council.

Documents published during the consultation referred to a possible permanent end to the studio's activities, scheduled between late 2026 and early 2027, with about 217 jobs at risk. Microsoft has said those documents are part of the required process and "do not represent a final decision". Arkane's union representatives argue that cancelling a nearly finished game would be a "monumental waste", have disputed the economic case for closure, and have not ruled out legal action or a strike.

A studio with a proud history

Arkane Lyon's games have rarely been huge sellers, but they are beloved by critics and players. Dishonored (2012) made stealth feel like improvisation, letting players combine powers in ways the designers had not planned. Deathloop (2021) wrapped that freedom inside a time-loop puzzle on an island stuck repeating the same day.

Microsoft inherited the studio when it bought ZeniMax, Bethesda's parent company, in 2021. Its sister studio, Arkane Austin, was closed in May 2024 after Redfall. For many fans, losing Lyon too would feel like losing the last of a very particular way of making games.

What's next

The key moment is the end of the extended consultation, about a month after the original November 13 date. The realistic outcomes range from a buyer or publishing partner taking on the studio and finishing Blade, to closure and cancellation, with other arrangements in between. As of this writing, no buyer has been named.

Until then, the best way to understand why people are fighting for this team is to play its work: Dishonored 2 and Deathloop are both still widely available. We will update this story when the decision lands.