Arkane Lyon may soon be facing closure, according to a new report by French site Le Monde, which says a deadline to find a buyer for the studio will land on November 13, at which point Microsoft could close the studio outright. Microsoft has since extended that deadline by a month, however, so it can continue to pursue alternative options.

Arkane Lyon was caught up in this year's vortex of Xbox layoffs, announced in July, which will see roughly 3,200 people put out of work. Xbox also dumped four studios: Double Fine, Compulsion Games, and Undead Labs all went independent (and almost immediately laid off large numbers of employees) while Hellblade developer Ninja Theory appears to be closing outright. Because Arkane is based in France, Xbox couldn't just drop the hammer on it. Instead, it began a legally-required consultation process "to review potential strategic options."

The Le Monde report says that on July 16, 10 days after the Xbox layoffs were announced, Arkane management informed employees that Xbox intended to close the studio. France's "Florange Law," however, requires companies with more than 1,000 employees who want to close a facility to undertake a search for a buyer first.

The deadline for that requirement in Arkane's case is November 13, after which Xbox will presumably be free to close the studio.

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