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Microsoft Closes Redfall Developer Arkane Austin, HiFi Rush Developer Tango Gameworks, and More in Devastating Cuts at Bethesda

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Microsoft has closed a number of Bethesda studios, including Redfall maker Arkane Austin, HiFi Rush developer Tango Gameworks, and more in devastating cuts at Bethesda, IGN can confirm.

In an email to staff sent by Matt Booty, head of Xbox Game Studios, Microsoft blamed the cuts on a “reprioritization of titles and resources”. The email, verified by IGN, is below:

"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"


 
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Gaiff

SBI’s Resident Gaslighter
Name a fucking shittier company. Acquire a ton of studios, only to mismanage them and close them. At this point, those imbeciles are doing far more harm than good to the industry. Just keep your grubby paws off developers Microsoft. You only know how to destroy them. They always brag about having a million studios that somehow produce fucking nothing.

Tango closing is some Grade-A bullshit considering that Hi-Fi Rush is their best new IP since Ori.
 
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Punished Miku

Human Rights Subscription Service
Tango Games closing is a nuclear bomb to the balls. Absolutely devastating. I wanted Hi-Fi 2, Ghostwire 2, and new IP. I wonder if Hi-Fi Rush bombed on PSN or something. It honestly still doesn't make any sense to me. I assume we're going to get some leaks or Schreir content to shed some light on this baffling decision. I can't help but wonder what is really even happening at that studio. The stuff Mikami said made little sense either.

The rest I can honestly understand.
 
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geary

Member
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
 

SlimySnake

Flashless at the Golden Globes
Name a fucking shittier company. Acquire a ton of studios, only to mismanage them and close them. At this point, those imbeciles are doing far more harm than good to the industry. Just keep your grubby paws off developers Microsoft. You only know how to destroy them. They always brag about having a million studios that somehow produce fucking nothing.

Tango closing is some Grade-A bullshit considering that Hi-Fi Rush is their best new IP since Ori.
Cant. Even Activision isnt this evil, incompetent, greedy and utterly fucking useless.

This is a self inflicted wound too. They put all their games on gamepass for a dollar and then blamed the studio for making flops. Phil shouldve been the one to get fired but he keeps getting promotions because thats how microsoft works.

Watch MS shut down Ninja Theory a few weeks after shipping the PS5 version. Unless Avowed sells millions, its also getting shut down.
 

Kusarigama

Member
Was there any leak/rumor that said that Tango was developing The Evil Within 3 and Arkane(don't remember if it was Austin or lyon) was going to do Dishonored 3 next.

Arkane Lyon is actually working on Blade. I'll feel bad if The Evil Within 3 was in development but got cancelled with this closure.
 
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Metnut

Member
It’s a bummer Hi-Fi Rush didn’t come to PS5 sooner. Maybe it could’ve saved the studio.

Seems like that releasing stuff for Gamepass day 1 isn’t a viable business model. It’s only a matter of time until the plug is pulled on Gamepass in its current form.

Not sure if Kinect or Gamepass was a bigger commercial flop.
 
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