The Syndicat des travailleureuses du jeu vidéo (STJV), which represents workers at Arkane Lyon, has accused Microsoft of undermining development of Marvel’s Blade. In a statement published today, the union said a 19-month hiring freeze caused delays and additional costs that Microsoft is now citing as an economic reason to close the studio.

The union said work on Blade is going well and that the game is on track to meet the quality Arkane players expect. It argued that closing the studio before the game is completed could cost more than finishing it, and described Arkane as profitable, though not profitable enough for Microsoft.

Arkane Lyon’s 217 employees, as well as contractors and freelancers, face losing their jobs unless a buyer is found. Microsoft initially set a November 13 deadline for a sale, then extended it to December 13, according to a Microsoft representative.

The STJV wants workers to have a say in selecting a buyer and has called for a fund to protect employees laid off by a new owner within two years. If the studio closes, it is seeking a $223,000 (€200,000) redundancy payment per worker and two years of Microsoft-funded support to help employees find new roles. Microsoft had not responded to the union’s claims at the time of writing.

Arkane was founded in 1999 and is known for the Dishonored series and Prey. Microsoft acquired the studio through its purchase of ZeniMax in 2021. Xbox closed Arkane’s Austin studio in 2024. Ubisoft is reportedly seeking to acquire Arkane Lyon, following an extension of its consultation period with Xbox.

Sources: GamesIndustry.biz.