Summary

  • Microsoft is closing down four Bethesda studios due to a “reprioritization of titles and resources”.
  • Among the four studios are Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks.
  • Xbox Game Studios head Matt Booty said in an email to staff that those who will be impacted "will be notified today".

Xbox Game Studios head Matt Booty has announced the shutdown of Arkane Austin and Tango Gameworks amidst huge cuts at Bethesda.

"Today I'm sharing changes we are making to our Bethesda and ZeniMax teams. These changes are grounded in prioritising high-impact titles and further investing in Bethesda's portfolio of blockbuster games and beloved worlds" Booty said in an email to Microsoft staff (as reported by IGN). "Those whose roles will be impacted will be notified today [...] Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities.

Xbox acquired Bethesda four years ago for a then-record-breaking $7.5 billion.

"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."

What Studios Have Been Shut Down?

In Booty's email, he announced that four studios across Bethesda are being closed.

Arkane Austin has been shut down with some members moved to other studios within Bethesda; Mighty Doom developer Alpha Dog Games (not Studios as Booty says) has also been closed down, with plans to sunset the mobile spin-off on August 7; after having just launched Hi-Fi Rush on PS5, Tango Gameworks has been closed, and Roundhouse Games is being absorbed into ZeniMax Online Studios to work on The Elder Scrolls Online.

Resident Evil and The Evil Within creator Shinji Mikami only left Tango Gameworks last year.

It's unclear why each studio was shut down, though it's worth noting that last year, Bethesda Softworks senior vice president Todd Vaughn said that Hi-Fi Rush was "one of the most successful launches for Bethesda and Xbox in recent years" and "generated significant positive momentum for the business and Tango".

Microsoft

Founded April 4, 1975 Notable Franchise Halo, Gears of War, Fable Notable Video Games Halo: Combat Evolved, Halo: Combat Evolved Anniversary, Halo 2, Halo 3, Halo Reach, Halo Infinite, Gears of War, Gears of War 2, Gears of War 3, Gears of War 4, Gears 5, Fable, Fable 2, Fable 3 Notable Video Game Consoles Xbox Series X, Xbox Series S, Xbox One X, Xbox One S, Xbox One, Xbox 360, Xbox (Original)

Microsoft is an American multinational conglomerate responsible for products such as Windows, Microsoft Office, Internet Explorer and Edge, and the Xbox series of home consoles.

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