Last week, it was reported that Microsoft's negotiations over the fate of Arkane Studios could be reaching an impasse as the deadline approached. The home of the Xbox brand has since confirmed the end date has been extended, allowing more time for a positive resolution.

Since summer, union representatives have been discussing what'll ultimately happen to Arkane in Xbox's grand restructuring with Microsoft. French law requires that any layoffs involving 1,000 or more people include an attempt to consider alternatives before letting people go.

As such, PlayStation's rival has to sit at the table with the makers of Dishonored and look at where the studio could go. Several options are being considered, presumably meaning the team could be sold to another publisher or media group.

Microsoft's been generally tight-lipped, but in a statement to PC Gamer, it was revealed that the timeline is growing longer. "We have extended the consultation period by one additional month as we explore options," a representative told the outlet, "including finding a partner to support the studio through the development work still ahead. This is a defined extension, and we remain committed to keeping the Works Council informed throughout the process."

The "development work still ahead" is on Marvel's Blade, a project that was announced in 2023. There are conflicting reports on its status, as a union rep told French outlet Le Monde it was nearing completion, whereas PC Gamer now says sources claim it still has years to go.

Regardless, any and all unreleased games become potential casualties amid the kind of layoffs Xbox is making.

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