According to various reports, Microsoft is closing multiple Xbox gaming studios, including Arkane Austin and Tango Gameworks.
Various studios in the Xbox gaming division are being closed by Microsoft. This was revealed by multiple reports, with the closures including Arkane Austin (Redfall, Prey), Tango Gameworks (Hi-Fi Rush), Alpha Dog Games (Mighty Doom) and Roundhouse Studios, which will be restructured and integrated into ZeniMax Online Studios.
Several Xbox/Bethesda Studios Are Being Shuttered
According to an internal email sent by Matt Booty, head of Xbox Game Studios, and revealed via IGN, the closures are part of restructuring Bethesda and ZeniMax, which have been acquired by Microsoft in 2021. The closures and restructures are being explained as Microsoft wanting to prioritize “high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades”.
Xbox is offering “make-good offers” to players who have purchased DLC for Redfall, the controversial last title made by Arkane Austin. Redfall, originally intended to be supported for years as a live-service title, will no longer get any new updates. Servers will remain online for an unspecified time. All released titles by the affected studios, like Tango’s 2023 surprise hit Hi-Fi Rush, will “continue to be available to players on the platforms [they are] today”.
This drastic decision immediately caused a stir on Twitter/X, with many industry representatives strongly criticizing Microsoft for taking this step. Digital Foundry’s John Linneman called the closures “absolutely nuts” while Dinga Bakaba, Studio Director at the unaffected Arkane Lyon, called the situation “terrible” in an emotional response, urging for more protection and care towards game developers.
This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.
— Dinga Bakaba (@DBakaba) May 7, 2024
It is unclear, how many people have been affected by these closures. It is also uncertain, how this will influence Microsoft’s on-going efforts to establish the Xbox brand in Japan. With Tango Gameworks, their only Japan-based studio is now gone. So far, Microsoft has not replied to requests for comment. We will update the story as soon as we get a response.