On June 30, 2026, the French company registry Pappers.fr recorded a personnel change: Arkane Studios president Leonard Bendel stepped down, and his place was taken by Jerk Gustafsson, co-founder and longtime head of MachineGames, the studio that brought us modern-day Wolfenstein and Indiana Jones and the Great Circle.
Amid rumors that swept gaming forums in June about the possible closure of Arkane Lyon, this appointment seems less like a death sentence and more like a lifeline. But what’s really behind the reshuffle? Is Arkane shutting down, merging with MachineGames, or simply a new captain? We examine all the facts, rumors, and Microsoft’s logic—including how this will impact Marvel’s Blade, Dishonored, and the future of both studios. A full timeline of events and a studio comparison table are below.
Table of Contents
Who is Jerk Gustafsson and why is he heading Arkane?
What is known about the new president?
Gustafsson is no random manager. Together with Jens Matthias, he founded MachineGames in 2009, after the studio’s former Starbreeze team left. Under his leadership, MachineGames released Wolfenstein: The New Order (2014), Wolfenstein II: The New Colossus (2017), and the recent hit Indiana Jones and the Great Circle (2024)—a title that received a warm reception and strengthened the studio’s position within Xbox.
Gustafsson’s appointment is more than just a name change. It’s a signal that Microsoft prioritizes management talent with a proven ability to bring complex projects to release. Pappers.fr reports that he became president of Arkane Studios (legal entity Arkane Studios SAS) on June 30th. He remains the head of MachineGames, meaning he now oversees two studios simultaneously.
Why Leonard Bendel left
Bendel has led Arkane since 2017, replacing Raphaël Colantonio. His work includes the release of Prey (2017), Dishonored: Death of the Outsider (2017), and Redfall (2023), which flopped in sales and critical acclaim. In 2024, Microsoft closed Arkane Austin, leaving Lyon as the only operating division. Bendel’s official reason for leaving has not been disclosed—neither he nor Microsoft have commented on the move. However, insiders attribute his departure to an internal restructuring at ZeniMax, in which Xbox is redistributing resources among studios, prioritizing Elder Scrolls and Fallout, and reassessing studios with unstable performance.
Is Arkane Closing or Being Saved? We’re Breaking Down the Rumors and the Facts
Closure Rumors – What We Heard in June
In mid-June, several industry publications reported on a “troubling atmosphere” at Arkane Lyon. Employees were allegedly expecting a restructuring announcement, while some Xbox sources hinted at a possible studio closure – similar to Arkane Austin, which was dissolved in 2024. The panic was fueled by the tarnished reputation of Redfall, and Marvel’s Blade – a major, yet-to-be-released project – required significant investment.
However, all these rumors remained at the level of anonymous insiders. There was no official confirmation from Microsoft or the developers themselves.
Why Gustafsson’s Appointment Changes the Picture
Appointing a new president is something Microsoft would not undertake for a studio doomed to closure. A leadership change is an investment in a reboot, not a liquidation. Moreover, Gustafsson is the man who managed to transform MachineGames from a small Swedish studio into one of the key Xbox developers. If Microsoft had planned to shut down Arkane, they simply wouldn’t have spent resources on finding and hiring a successor.
Therefore, rumors of closure are effectively refuted by the personnel decision itself. Arkane Lyon will continue to exist—but under new management and likely with new priorities.
What will happen to Marvel’s Blade? Fans’ main question
Development of Marvel’s Blade is not officially discontinued. This is confirmed by all sources—none of them report a pause. The game was announced in 2023 at The Game Awards, and since then, Arkane Lyon has been working on it in close collaboration with Marvel. Gustafsson’s appointment doesn’t cancel the project, but it could impact its final form: the new president is known for his attention to story and characters, which benefits the narrative component.
Important: MachineGames has experience working with licensed universes—Indiana Jones demonstrated that the studio is adept at carefully handling iconic franchises. Gustafsson’s involvement with Blade could add more cinematic quality and depth, but is unlikely to result in a genre shift (an immersive open-world simulator).
Arkane and MachineGames Merger: Reality or Speculation
What the Official Information Says
Currently, there is no official confirmation of the merger between the two studios. Pappers.fr has only recorded a change in president, not a merger of legal entities. There are no records of asset mergers or name changes in the registry. However, experts (such as analysts at ITHome) believe that Microsoft may pursue an integration approach—uniting teams to collaborate on large projects while preserving their trademarks.
How the Studios Have Collaborated Before
Arkane Lyon and MachineGames collaborated in 2019 during the development of Wolfenstein: Youngblood. Back then, Arkane was helping MachineGames with level design and co-op systems. This wasn’t just a chance encounter—the studios’ technical and artistic approaches are compatible. Both enjoy detailed world-building, and both are skilled at crafting intimate stories with stealth elements. So, a hypothetical merger seems logical, but remains a matter of conjecture for now.
What does the merger of Arkane and MachineGames mean for players—the future of style and quality?
Assuming Microsoft does merge the studios (even without an official announcement, through Gustafsson’s shared leadership), what will this mean for players?
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Synergy of styles: Arkane is known for its “game physics” and systemic approach (Dishonored, Prey). MachineGames is known for its linear but powerful story-driven shooters. Their merger could create a hybrid—an immersive simulator with a strong narrative arc, which fans have long been waiting for.
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Acceleration of development: The combined team will be able to release games faster without sacrificing quality. Blade and the potential Dishonored 3 could receive more resources.
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Risk of loss of identity: There is a concern that the Arkane spirit—nonlinearity, freedom of choice, hidden paths—could be diluted by MachineGames’ more straightforward approach. However, Gustafsson has repeatedly stated that he values the studio’s visions, and with Indiana Jones, he allowed the studio to experiment with open-world environments.
Studio Comparison Chart (2026)
