Xbox reportedly shutting down four Bethesda studios

Soon to be closed Xbox studio Tango Gameworks has confirmed that a physical edition of Hi-Fi Rush is still being worked on.

This week, Microsoft and Bethesda announced that they would be closing down multiple game development studios under their umbrella. These include Alpha Dog Games, maker of Mighty Doom, and Arkane Austin, developer of the disastrous Redfall among others. In the gaming industry, the conventional wisdom has long been held that bad games sink you and great games save you, which would lead many to drawing an unfortunate line between Redfall’s reception and Arkane Austin’s closure — but immediately stops supporting that conclusion when you get to Tango Gameworks.

Xbox Game Studios head Matt Booty has reportedly said Microsoft needs smaller games that will earn it «prestige and awards» a day after shutting down Tango Gameworks.

Arkane Austin and Tango Gameworks were reportedly in the process of pitching sequels to Dishonored and Hi-Fi Rush before Xbox’s sudden closure of their studios on Tuesday. This news comes after learning more details surrounding the shutdown of three ZeniMax Media subsidiary studios, Hi-Fi Rush developer Tango Gameworks prominently among them.

The sudden closure of several video-game studios at Microsoft's Xbox division was the result of a widespread cost-cutting initiative that still isn't finished.

The sudden closure of several video-game studios at Microsoft Corp.'s Xbox division was the result of a widespread cost-cutting initiative that still isn't finished. 

Xbox rocked the games industry earlier this week by closing down Tango Gameworks and Arkane Austin, two developers responsible for beloved titles such as The Evil Within series, Ghostwire: Tokyo, and the Prey reboot. Pretty much everyone was surprised by the announcement, including the people at Tango and Arkane Austin themselves, who were reportedly in the middle of pitching new projects to Xbox before being shut down.

Resident Evil creator and Tango Gameworks founder Shinji Mikami has shared his thoughts on the announced closure of the renowned game studio. On May 7, Microsoft revealed that it was shutting down four Bethesda studios: Redfall developer Arkane Austin, mobile studio Alpha Dog Games, Roundhouse Studios, and Tango Gameworks.

Vampire shooter Redfall was to receive an offline mode via update this very month before Microsoft staked creators Arkane Austin, according to a report. To spell it out, the cancellation of the offline functionality means that Redfall will now be officially playable for only as long as Microsoft run the servers. Another win for videogame preservation!

Microsoft has shuttered several Bethesda-owned game studios, including Hi-Fi Rush developer Tango Gameworks and Redfall maker Arkane Austin, in order to shift focus on to its “priority games”. The Xbox parent is also closing Alpha Dog Games, makers of the mobile game Mighty Doom, while Roundhouse Studios, which also contributed to Redfall development, will be absorbed by ZeniMax Online Studios. The development, initially reported by IGN, was confirmed by affected studios Tango Gameworks and Arkane in separate posts on X late Tuesday. The shutdowns come months after Microsoft announced layoffs at Xbox and Activision Blizzard earlier this year, which made 1,900 roles redundant.

Microsoft has shuttered three ZeniMax teams: Arkane Austin, Tango Gameworks and Alpha Dog Studios. The company is also folding Roundhouse Games into Zenimax Online Studios. Arkane Austin is the home of Prey and Redfall, while Tango is responsible for The Evil Within, Ghostwire Tokyo and Hi-Fi Rush. Alpha Dog is the creator of Mighty Doom and Roundhouse was a support studio for ZeniMax projects.

The video game industry has reacted with shock and anger after Microsoft shut down several game studios today, May 7, 2024 including Arkane Austin and Tango Gameworks, the developers of Redfall and Hi-Fi Rush respectively.