Arkane Lyon and Even Sony Studios at Risk of Closure, Reports French Journalist

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French journalist Sylvain Trinel of BFM TV has reported potential layoffs and studio closures affecting not only Xbox but also Sony. This follows recent news that Microsoft is considering granting independence to studios like Compulsion Games, Double Fine Productions, and Ninja Theory. Trinel suggests that PlayStation Studios may face similar challenges. Trinel specifically named Arkane Lyon as a studio likely to be shut down, with CEO Asha Sharma reportedly planning significant decisions soon. He also mentioned other studios experiencing financial difficulties, including Bethesda Game Studios, Id Software, BioWare, Dontnod, Quantic Dream, and PlayStation Studios, as potential casualties. These reports remain unconfirmed rumors. Trinel indicated on X that this situation with Microsoft could be the beginning of a wider restructuring among publisher-owned studios, warning that other major studios, such as Quantic Dream, could also be affected. He reiterated that the closure of Arkane Studios is not speculative but imminent, stating it is “happening sooner than you think.”

This is not the first report regarding Arkane Lyon’s future. Following the Xbox Games Showcase last month, Jeff Grubb hinted that their project Marvel’s Blade was at risk of cancellation. Mike Straw of Insider Gaming also recently identified Arkane Lyon and Compulsion Games as studios facing difficulties. Arkane Austin, the American branch of Arkane, was previously closed after the underperformance of Redfall. Arkane Lyon released Deathloop last year, which received critical acclaim but failed to meet sales expectations. The studio has since been developing Marvel’s Blade for Xbox. Bethesda Game Studios, known for The Elder Scrolls and Fallout series, is a key Xbox Game Studios entity, though recent titles have not met previous success, despite anticipation for future Elder Scrolls projects. Id Software’s Doom: Dark Ages was considered a disappointment, but the studio maintains a strong reputation and has an upcoming DLC scheduled for July.

BioWare has experienced significant challenges for years, with titles like Dragon Age: The Veilguard reportedly underperforming. Despite layoffs, the studio is now a smaller team focused on releasing a new Mass Effect title. The French studio Dontnod is also reportedly struggling, with its latest game, Banishers: Ghosts of New Eden, not selling well. Funding from their investor, Tencent, is reportedly uncertain, potentially leading to a financial shortfall by November. Quantic Dream has also been reportedly facing difficulties. Their new game, Star Wars: Eclipse, has been in development for five years without a confirmed release date. An earlier attempt to enter the MOBA genre with Spellcasters Chronicles was canceled after only a few months. There are rumors that NetEase, Quantic Dream’s owner, is considering selling the studio. Trinel also suggested that studios under PlayStation Studios might be facing an uncertain future. While an X user speculated about Bungie and Housemarque due to underperforming game sales, Trinel did not confirm these names. Media Molecule could also be at risk, following the lackluster performance of Dreams and subsequent layoffs, including the departure of key leaders Mark Healey and David Smith.

Uncertain Future Awaits Haven Studios After First Game’s Underperformance and Jade Raymond’s Departure

The situation remains fluid for Haven Studios, established in 2021. Their first game, Fairgames, reportedly did not resonate well with players and is rumored to be shifting to an extraction shooter genre. Studio founder Jade Raymond departed last year, leaving the studio’s future uncertain.

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