Regarding the large-scale reorganization and layoff plans for Microsoft’s Xbox division revealed in July 2026, it has been reported that France-based Arkane Studios will reach the deadline for discussions regarding its closure on November 13, 2026 (local time).
"Multiple Acquisition Options Under Consideration," According to Local Reports
As part of Microsoft’s large-scale layoff plan, the company announced it would cut approximately 3,200 positions across the Xbox division throughout fiscal year 2027. Amid this, studios such as Double Fine Productions—known for *Psychonauts*—and Compulsion Games—known for *South of Midnight*—have decided to become independent.
Additionally, Undead Labs (known for the *State of Decay* series, among others) carried out large-scale layoffs after becoming independent. As for Ninja Theory (known for the *Hellblade* series, among others), it was announced in September 2026 that two deals aimed at ensuring the studio’s survival had fallen through, and that layoffs had already begun.
As part of Microsoft’s July plans, Arkane Studios was reported to have begun discussions with its local labor-management council to explore strategic options. According to France’s Le Monde, the search for an acquisition partner for the studio began this summer, and it appears that “several acquisition models are being considered” (via Gematsu).
November 13 marks the deadline for negotiations
The article reports that November 13, 2026, is the deadline for negotiations with the studio, and that more than 200 employees are facing job insecurity.Neither Microsoft nor Arkane Studios has issued a statement regarding this matter; the report is based on comments from representatives of French labor unions.
