Xbox is Shutting Down Arkane Austin, Tango Gameworks, and Two Other Studios

Microsoft announced today that it’s shutting down four studios under the Bethesda/Zenimax umbrella. The affected studios include Redfall developer Arkane Austin, Hi-Fi Rush developer Tango Gameworks, mobile game developer Alpha Dog Studios, as well as Roundhouse Games.

Head of Xbox Game Studios Matt Booty announced the news today in an email sent to staff obtained by IGN. The gaming exec said that “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.”

The decision to shut down the Tokyo-based Tango Gameworks is quite surprising, even though its founder Shinji Mikami announced his departure last year. Hi-Fi Rush, the studio’s latest game received critical acclaim, and it’s often been listed among the best Xbox exclusive games released during this new console generation It’s also one of the four Xbox exclusive games Microsoft decided to release on the PlayStation 5 as an “experiment” earlier this year.

The closure of Arkane Austin is also unfortunate, even though Redfall, the studio’s latest game launched in an unfinished state and received terrible reviews. Pete Hines, Bethesda’s head of global publishing said in an interview in September that “We’re going to get it to be a good game because we know, as a first-party studio, Game Pass lives forever.”

However, it’s now been confirmed that Redfall won’t be receive any new updates. Moreover, players who purchased the game’s Bite Back upgrade, which was supposed to add two new characters and other new content will be able to get their money back.

Signup here https://t.co/1Pr9vfnn4K to receive details on how eligible players can receive this credit. pic.twitter.com/FFXiYEXgrM

— Redfall (@playRedfall) May 7, 2024

Microsoft’s decision to close four Bethesda/Zenimax studios 3 years after acquiring the publisher also comes just a couple of months after the company laid off 1,900 employees across its Gaming division. Microsoft is now one of the biggest video game publishers on the market after acquiring Activision Blizzard last fall for $68 billion, but as Booty explained in his email, it’s now time for some consolidation. “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,” the exec said today.

You can find Booty’s full email 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.

– Matt