Deathloop game director Dinga Bakaba confirms that the game takes place in the Dishonored universe, set in the far future after the events of the Death of the Outsider DLC. As many know, especially since Deathloop is also available on Xbox Series X/S now, the game poses as many questions as it does answers.
This reveal comes at an interesting time. Not only is Deathloop receiving renewed attention because of its Xbox Game Pass release and its new Golden Loop update, but many Arkane fans are also preparing to celebrate the Dishonored franchise. After all, October 9 (two days away as of this writing) marks the ten-year anniversary of Dishonored. Replaying these games would be a great way to celebrate said anniversary, but diving through Deathloop and looking for their references would be a good way as well.
Either way, this reveal comes during the official Xbox podcast of Larry Hryb, better known as Major Nelson. Jeff Rubenstein asks, during a later segment, Bakaba if the two games are connected, as he notes that, throughout Deathloop, there are suggestions it is connected to Dishonored thanks to a hidden song and a few other hints. Bakaba did outright confirm this, stating that the events of Deathloop are something that Arkane imagines taking place long after the events of Dishonored: Death of the Outsider.
Dishonored: Death of the Outsider is a standalone DLC, basically a sequel for Dishonored 2, and in it, the Outsider is removed from the Void regardless of the player's choice. The impact of this cannot be understated and can really only be imagined, as this impacts the chaotic nature of the Void, the magic of the world, and so on. Removing the Outsider destabilizes it and the physical world forever, and perhaps this explains much of the "magic" in Deathloop, such as how the island is stuck in a time loop.
Deathloop's Golden Loop update also seemingly implies this, if less outright. The extended ending doesn't add much, but it does seem many of Blackreef's residents regain their memory, and there are Outsider marks noticeable in its new content. Of course, while this heavily implied it, this could have been chalked up to an Easter egg. Bakaba's confirmation bodes well, then, for the future of the Dishonored universe, perhaps too for an eventual sequel to Deathloop.
Deathloop is available now on PC, PS5, and Xbox Series X/S.