Xbox is shutting down Arkane Austin, Tango Gameworks and two other Bethesda studios

07.05.2024 - 14:15 / videogameschronicle.com / Phil Spencer / Arkane Austin / Bethesda Softworks / Matt Booty / Tango Gameworks / Id Software / Arkane Studios / Chris Scullion

Xbox is closing down four Bethesda studios, including Redfall developer Arkane Austin and Hi-Fi Rush studio Tango Gameworks.

Arkane, Tango, Alpha Dog and Roundhouse Games will all be closing down, with some staff joining other teams, according to a memo sent to staff.

Staff were told the news over email by Xbox Game Studios head Matt Booty. A copy of the message was first reported by IGN.

Booty told staff that the decision was based on a “reprioritisation of titles and resources”, and that some employees will be realigned to other teams, and others laid off.

“Today I’m sharing changes we are making to our Bethesda and ZeniMax teams,” Booty’s email reads. “These changes are grounded in prioritising high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.

“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success. This reprioritisation of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.”

Booty goes on to detail the changes affecting the four studios. Arkane Austin – the studio behind Redfall – will close, with “some members of the team joining other studios to work on projects across Bethesda”.

“Redfall’s previous update will be its last as we end all development on the game,” Booty said. “The game and its servers will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC.”

Japan-based Tango Gameworks – previously responsible for The Evil Within, Ghostwire: Tokyo and Hi-Fi Rush – will also close, with Booty adding that,  “Hi-Fi Rush will continue to be available to players on the platforms it is today”.

Alpha Dog, the studio behind Mighty Doom, will be closing too, with Mighty Doom closing down on August 7. “We will be turning off the ability for players to make any purchases in the game”, Booty said.

Finally, Roundhouse Games – which itself was formed following the closure of Human Head Studios – will be closing down and the team will be joining ZeniMax Online Studios.

“Roundhouse has played a key role in many of our recent game launches and bringing them into ZOS to work on The Elder Scrolls Online will mean we can do even more to grow the world that millions of players call home,” Booty wrote.

As well as the presumed layoffs at Arkane Austin, Tango Gameworks and Alpha Dog, Booty also told staff that “a small number of roles across select Bethesda publishing and corporate teams will also be eliminated”.

“These changes are not a reflection of the creativity and skill of the talented