Today, Microsoft confirmed that it has closed several Bethesda studios, including Redfall developer Arkana Austin and Tango Gameworks, the studio that gave us The Evil Within series and Hi-Fi Rush, perhaps the best new IP to come out of Bethesda in years. These closures are part of Microsoft’s cuts, and employees of these studios were notified of the closures by email by the head of Xbox Game Studios, Matt Booty, according to Bloomberg and IGN.
Here is the count of studios that are being closed down.
- Arkane Austin (Redfall)
- Tango Gameworks (The Evil Within, Ghostwire Tokyo, Hi-Fi Rush)
- Alpha Dog Studios (Redfall) – Formerly known as Human Head Studios, but closed down after the release of Rune II. Alpha Dog Studios was formed after and was composed of the former members of the studio.
- Roundhouse Studios (Merging with Zenimax Online Studios)
This is the email that was sent out by Matt Booty, to those who have been affected by these restructuring cuts.
Today I’m sharing changes we are making to our Bethesda and ZeniMax teams. These changes are grounded in prioritizing 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 reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.
Here are the changes going into effect:
Arkane Austin – This studio will close with some members of the team joining other studios to work on projects across Bethesda. Arkane Austin has a history of making impactful and innovative games and it is a pedigree that everyone should be proud of. Redfall’s previous update will be its last as we end all development on the game. 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.
Alpha Dog Studios – This studio will also close. We appreciate the team’s creativity in bringing Doom to new players. Mighty Doom will be sunset on August 7 and we will be turning off the ability for players to make any purchases in the game.
Tango Gameworks – Tango Gameworks will also close. We are thankful for their contributions to Bethesda and players around the world. Hi-Fi Rush will continue to be available to players on the platforms it is today.
Roundhouse Games – The team at Roundhouse Games will be joining ZeniMax Online Studios (ZOS). 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.
With this consolidation of our Bethesda studio teams, so that we can invest more deeply in our portfolio of games and new IP, a small number of roles across select Bethesda publishing and corporate teams will also be eliminated.
Those whose roles will be impacted will be notified today, and we ask that you please treat your departing colleagues with respect and compassion. We will provide our full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.
These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things. I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.
Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities. As we look to the future, there is an impressive line-up of games on the horizon. In 2024 alone we have Starfield Shattered Space, Fallout 76 Skyline Valley, Indiana Jones and The Great Circle, and The Elder Scrolls Online’s Golden Road. As we align our plans and resources to best set ourselves up for success in this complex and changing industry, our teams across Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, ZeniMax Online Studios and the Bethesda publishing and corporate teams will be well-positioned to build new IP, explore new game concepts, and expand on our existing franchises.
– Matt
It’s puzzling to see that Microsoft/Xbox would shutter Tango Gameworks; after all, this studio had released several solid titles with The Evil Within series, Ghostwire Tokyo, and more recently, the highly acclaimed Hi-Fi Rush. On the other hand, Arkane Austin was responsible for Redfall, a title that has been surrounded by controversy and, when released, was met with mixed reception. It’s as if you make a stinker of a game, your studio gets closed, but if you make a fantastic title (or several), your studio still gets closed. It’s a sad reflection of the climate of the gaming industry space.
This is devastating, to say the least, and comes after Microsoft had already planned to cut 1900 of its employees. This is just more layoffs in the gaming industry space, which continues to be an ongoing issue. Since 2024, it seems that every month, we hear about jobs being cut. So far we’ve seen a number of layoffs from several companies, including Twitch, Embracer Group, Riot Games, Electronic Arts, and Sega. However, Microsoft’s initial announcement of 1900 has been the biggest number thus far, and we don’t know if that number includes the recent Bethesda studios or if it adds to that.
We’ve reached out to Microsoft and Xbox for more information.
This story is developing…
