Arkane Studios union accuses Microsoft of sabotaging Marvel's Blade via hiring freeze

Published 4 Nov 2026 · Games Atlas Editorial · Union & Collective Action · Companies: Microsoft, Arkane Studios, Ubisoft

Games Atlas summary: French union STJV said on November 4 that Microsoft froze hiring at Arkane Lyon for 19 months. The freeze delayed Marvel's Blade and raised its cost, costs Microsoft now cites to justify closing the studio. STJV says Arkane is profitable, "just not profitable enough for Microsoft." Microsoft has until December 13 to sell the 217-person studio or shut it down.

Union ties the freeze directly to the closure case

• STJV says Blade production is "going fine" and on par with Arkane's usual quality.
• It argues Microsoft created the delay it now uses as an economic rationale for closure.
• "Microsoft is actually why those economic reasons even exist" - STJV, Arkane Lyon union statement
• The union also alleges a cash-pooling mechanism routes Arkane's profit to the Microsoft group, suppressing the studio's own reserves.

French labor rules raise the price of walking away

• STJV's demands exceed France's legal works-council consultation: a seat in choosing any buyer and a 24-month post-sale layoff protection fund.
• Its closure terms total $223,000 (€200,000) per worker, or roughly $48.4 million for 217 staff before contractor and freelancer claims.
• STJV argues finishing Blade would cost less than paying to close the studio now.
• Each added obligation raises the liability a buyer like Ubisoft would inherit alongside the Arkane IP.

Deadline extension signals an unresolved sale process

• Microsoft pushed its original November 13 sale deadline to December 13, one month later.
• Bloomberg reported Ubisoft and two other parties have submitted bids for Arkane Lyon.
• Microsoft has not responded to the union's sabotage allegations as of this reporting.
• Xbox previously closed Arkane Austin in 2024 and is separately struggling to find a buyer for Ninja Theory.

What this means

• For Investors & VC: Add parent cash-pooling sweeps to diligence before valuing any carve-out studio's standalone reserves.
• For Publishers & Developers: Budget French post-sale layoff-fund obligations into any Arkane bid model.
• For Service Vendors: Pitch co-dev capacity to Blade's eventual owner for post-transfer staffing gaps.

Sources

• Arkane union accuses Microsoft of "sabotaging" Marvel's Blade with 19-month hiring freeze | GamesIndustry.biz (gamesindustry.biz)
• French Video Game Union Says Microsoft Undermined Arkane (aftermath.site)
• Arkane union says Microsoft sabotaged Marvel's Blade (gameluster.com)
• Microsoft Accused Of Delaying Marvel’s Blade To Justify Arkane Closure - Power Up Gaming (powerupgaming.co.uk)