Ubisoft is reportedly in talks with Microsoft to acquire Arkane Lyon, the studio developing Marvel’s Blade. Bloomberg reports that Ubisoft is one of three companies to have submitted bids, though the other bidders have not been identified.

Microsoft is also exploring the possibility of selling Arkane Lyon back to its management. According to the report, if no deal is reached by December, the studio could be shut down.

Arkane Lyon was among the studios Xbox divested earlier this year. While several of those developers have since returned to independent status, Arkane is still seeking a path forward after its time under Microsoft.

Marvel’s Blade was announced at The Game Awards in December 2023, but Arkane has not publicly shared further details about the game’s status. Reports cited in the source say it is nearing completion and could launch in the fourth quarter of 2027 if the studio can continue development under a new publisher.

Sources: GameSpot.