Ubisoft among bidders for Microsoft's Arkane Studios as Xbox weighs options

Who is bidding and what is on the table

Multiple suitors have approached Microsoft about acquiring Arkane Studios, the Lyon, France developer behind Dishonored and an in-development game based on Blade, per people familiar with the negotiations who asked not to be named. Ubisoft has lodged a bid, and at least two other gaming companies have also made offers. The parties have not disclosed terms, and no deal has been finalized.

What Microsoft is weighing and the timeline

People familiar with the talks said Xbox has considered a sale of the studio to its own management, and a company spokesperson added that the firm is assessing alternatives before a December deadline, while declining to provide details. A Ubisoft spokesperson did not immediately provide comment. In July, Xbox announced intentions to sell Arkane along with four other studios, a move that Chief Executive Officer Asha Sharma described as a "reset" of the gaming division's business.

Arkane's track record and the current project

Arkane, part of publisher Bethesda Softworks acquired by Xbox in 2021, is known for critically acclaimed releases such as the time-bending action title Deathloop. The studio is working on Marvel's Blade, unveiled in 2023, and people familiar with the talks said a sale would likely allow Arkane to complete that game, which is expected to launch within the next year or two. The broader backdrop is mixed: Arkane Austin, a sister team, was closed in 2024 after Redfall, which was a significant flop. While reports last month speculated Arkane might shut down, people close to the situation said a sale is the more likely outcome.

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Why investors care

For Microsoft, this potential divestiture lines up with its stated "reset" of the gaming unit. For a buyer like Ubisoft, Arkane brings a proven single player pedigree and a high-visibility Blade project that a deal would likely allow it to finish within the stated timeframe. The bottom line: where Arkane lands could influence near term execution risk and how investors view each company's game pipeline.

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