French game union claims Microsoft sabotaged Blade and then used the fallout to justify closing Arkane

Background: A funded game, a studio with a known record, and a hiring freeze

France's video game workers' union, the Syndicat des Travailleureuses du Jeu Vidéo, has accused Microsoft of sabotaging work on Marvel's Blade and using the resulting problems to justify Arkane's closure. The union says development of Blade is going fine and compares the game with Arkane's earlier body of work, including the Dishonored series, Prey, Deathloop, and Dark Messiah of Might and Magic. It also says Microsoft funded the project.

The union's argument rests on one time span: 19 months. It says Microsoft froze hiring for that period, and that the freeze artificially caused delays and additional costs. In the union's account, Microsoft then used those same delays and additional costs as part of the reason for closing the studio.

Development: Why the union disputes Microsoft's economic case

Microsoft chose to justify the closure on economic reasons, according to the union. The union does not accept that framing. It says Microsoft is responsible for the economic pressures now cited against Arkane, because the hiring freeze created the delays and added costs later used in the closure decision.

The union adds that closing Arkane would defy financial logic. It argues that shutting the studio down would likely cost more money than allowing it to finish Blade. It also says Arkane is profitable, but not profitable enough for Microsoft.

For the union, the issue is not only a project decision. It says Microsoft decided to close Arkane, and that decision has placed workers in a harsh situation. The union therefore says Microsoft is responsible for Arkane's current situation and for the situation facing workers, and must take full responsibility and act accordingly.

Escalation: The union's preferred outcome and its exit demands

The union says its dearest wish is for Arkane to live on. It also says the studio's future must go beyond completing Blade alone.

If Arkane cannot continue, the union says Microsoft must take care of the hundreds of lives thrown into turmoil. It describes that duty as going beyond the bare minimum required by law, given what it calls Microsoft's essentially limitless resources. The union says it will not allow the lives of Arkane Studios' workers to be destroyed without the company paying a fair price.

The union's demands depend on what happens next.

If acquisition negotiations continue, the union wants employees to have control over decisions that shape their future. It calls for more than the mandatory Work Council consultation. It wants employee representatives and unions to have a say in choosing a potential buyer. It also wants a protection fund for employees at the level of the PSE compensation, covering workers fired for economic reasons by the buyer in the 24 following months.

If Arkane is ultimately closed, the union asks Microsoft to fund support commensurate with Microsoft's status as a corporation. The demands include a redundancy payment of 200,000 euros ($225,000), two years of redeployment support funded by Microsoft, shared resources for training and studio creation with a residual bonus to help all employees look to the future with confidence, and compensation up to the redundancy payment for independent workers whose contracts are breached.

Latest Progress: A cut studio, a possible buyer, and an unresolved question

The fate of Arkane remains unresolved. The studio fell victim to the most recent round of cuts at Xbox, but a recent report indicated that it might yet find a home with a new owner. A request for comment on the union's demands was sent to Xbox, with updates promised if a reply is received.

The financial scale used to frame the dispute is Microsoft's own earnings. Microsoft's net income for the first quarter of fiscal year 27 was $36.6 billion. Xbox is a small contributor to that total, but it is part of Microsoft, and that makes the issue Microsoft's to deal with.

Current Stage: What the dispute now turns on

At this stage, the dispute is not only about whether Marvel's Blade can be finished. It is about whether Arkane will be sold, closed, or continued, and whether Microsoft accepts a compensation standard above the legal minimum. The union's account points to a 19-month hiring freeze, delays and costs, a profitability claim, a $225,000 redundancy payment, a 200,000 euro demand, two years of redeployment support, and a possible new owner as the facts defining the next step.