In case 2026 hasn’t already been an indication, not everything is copacetic in the game development industry. Today, union workers for Arkane Studios are unleashing a torrent of allegations leveled at Microsoft in a letter posted on the website of Syndicat des Travailleureuses du Jeu Vidéo (STJV), an independent French video game union. The letter states that the workers at Arkane “have to face the harsh reality: our studio might get closed because, and only because, Microsoft decided to, even if that means sabotaging the game it funded.” The game in question is, of course, Marvel’s Blade.
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The letter continues, “Microsoft chose to justify the closure on economic reasons. But Microsoft is actually why those economic reasons even exist.” The claims allege that Microsoft implemented a hiring freeze for 19 months, which created a delay and additional costs. The letter states that it is this delay and additional cost that Microsoft is citing as the reason to close down the studio. While the letter finds a silver lining in French law, which dictates that Arkane Studios must have the opportunity to find a buyer before it is closed, fears still mount for the worst. “If no solid offer is on the table, Arkane will have to close its doors. Doing so would mean to let down 217 workers, 217 people with lives and hopes that would be crushed by this decision and thrown on the job market at a time where it is going through an unprecedented crisis.”
Arkane Studios is a development team with a storied history in gaming. The original studio, founded in Lyon, France, began a notable career with the Xbox and PC action RPG, Arx Fatalis in 2002. In 2012, Arkane made quite the splash with the release of its supernatural first-person assassin game, Dishonored. In 2017, the team resurrected Prey with a new entry that was widely praised. This game was developed by a splinter studio, known as Arkane Austin, which was established in Austin, Texas, in 2006. The Lyon team later co-developed Wolfenstein: Youngblood and Wolfenstein: Cyberpilot with MachineGames. In 2021, they released the time-loop first-person shooter, Deathloop.
The Arkane Austin location then developed and released Redfall for the Xbox Series X/S and PC in 2023 to severely underwhelming reviews. As a result of the game’s performance, Microsoft closed Arkane Austin. The heavily online and semi-live service title was placed on Arkane Austin’s shoulders at the behest of Microsoft despite the studio’s history with high-performing single-player experiences.
The letter with STJV regarding the Lyon location’s current situation continues to establish Arkane’s defensive posture. “The truth is that Microsoft based its decision only on stone cold and inhuman logic, in which our lives, projects and dreams are voided, so we can better serve Microsoft’s short term financial goals. In the wake of thousands of yearly firings, studio closure to which you can now add the tenth of thousands of voluntary buyout offered by the company, the decision to close Arkane is solely the brutal application of a never-ending search for maximum profit optimization. Arkane is profitable. Just not profitable enough for Microsoft.”
The letter closes with a demand. In the event that Arkane closes, a protection fund for employees should be established. Furthermore, Microsoft should “release funds commensurate with Microsoft’s status as a corporation, to make sure that the workers are compensated in line with the loss suffered.” This includes a redundancy payment of 200K€, two years’ redeployment support, shared resources for training and future development, and compensation for contractors, as well. It’s a fairly blunt letter that shares the ongoing anxiety currently being experienced throughout the gaming industry. Currently, according to a Bloomberg report, the studio is attracting bidders, including Ubisoft. So, only time will tell what the future for Arkane Studios holds.
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Image Courtesy of Annapurna Interactive/Konami/IO Interactive
