In a shocking move, Microsoft announced the closure of several prominent Bethesda studios, including Arkane Austin and Tango Gameworks.
2024 has been a difficult time for the games industry, with many cutbacks and closures after the boom the industry saw during the pandemic slowed. Today marks another major round of cuts, with Microsoft announcing a series of closures, including Arkane Austin, the creators of the recently released Redfall, and Tango Gameworks, the developers behind the critically acclaimed rhythm action game Hi-Fi Rush and the horror series The Evil Within. The news comes as part of a larger restructuring within Xbox Game Studios to prioritize high-impact titles and further invest in Bethesda’s portfolio of blockbuster franchises.
With these studios delivering some landmark titles that have excited gamers everywhere, this was a surprising move. Arkane Austin, known for its immersive titles like Dishonored and Prey, had recently launched Redfall to mixed reviews. Despite the game’s shortcomings, many had hoped that the studio would have the opportunity to learn from its missteps and continue to innovate in the genre, with Microsoft promising “make-good offers” to players who purchased the Hero edition due to the DLC cut short and never coming to players.
Similarly, led by renowned game director Shinji Mikami had found success with the surprise hit Hi-Fi Rush, leaving fans eager to see what the studio would create next with the studio lead no longer with the studio. The studio has delivered five games since it opened in 2010, including The Evil Within, The Evil Within 2, and Ghostwire: Tokyo.
In addition to Arkane Austin and Tango Gameworks, Microsoft has also confirmed the closure of Alpha Dog Games, a mobile game developer acquired by Bethesda in 2019, and the Montreal office of Bethesda Game Studios, which had been working on unannounced projects. Roundhouse Games will also be merged with ZeniMax Online Studios to aid with the development of The Elder Scrolls Online.
In an email to employees, Xbox Game Studios head Matt Booty attributed the closures to a “reprioritization of titles and resources. He emphasized that these changes were necessary to increase focus on Bethesda’s most popular franchises and create new ones. However, the abruptness of the announcement and the lack of transparency regarding the fate of the affected employees raises questions about Microsoft’s handling of the situation, especially with 2024 being such a tough year for gaming.
The closures are part of a larger trend of consolidation and restructuring within the gaming industry as companies grapple with the increasing costs and risks associated with game development. While Microsoft has stated that it remains committed to Bethesda’s future, with a robust lineup of games set to release in the coming years, including Starfield and the highly anticipated Elder Scrolls VI, the loss of these talented studios is sure to be felt by players and developers alike.
As the industry continues to evolve and adapt to new challenges, it remains to be seen how these changes will impact the future of gaming. For now, we are all saddened by the loss of such beloved studios while hoping that the affected employees find new opportunities to continue their passion for game development.
