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

Microsoft has made significant changes within Bethesda studios, resulting in the closure of several studios, including Arkane Austin, Tango Gameworks, and more. Alpha Dog Games, the creator of Mighty Doom, will also be shutting down. Roundhouse Studios will be integrated into ZeniMax Online Studios, the developer of The Elder Scrolls Online. Microsoft, with a valuation exceeding $3 trillion, did not disclose the exact number of staff affected by these changes, but layoffs are expected. IGN has reached out to Bethesda for a statement, while Microsoft chose not to provide further details when approached by IGN.

Unfortunately, updates for the vampire co-op game Redfall, such as the promised offline mode and new character DLC, have been canceled as Microsoft has halted all development on the game. However, Redfall will continue to be playable online, and Microsoft plans to offer a compensation offer for those who purchased the Hero DLC.

Arkane Lyon, currently working on Marvel’s Blade, has been spared from the closures, along with Bethesda Game Studios (known for Fallout, The Elder Scrolls, and Starfield) and Machine Games (developers of Indiana Jones and The Great Circle). Additionally, id Software, the studio behind Doom, remains unaffected by the changes.

In an email sent to the staff by Matt Booty, the head of Xbox Game Studios, Microsoft attributed the restructuring to a “reprioritization of titles and resources.” The email, verified by IGN, emphasized the focus on investing in Bethesda’s established game franchises and creating new successful titles. This realignment of teams and resources necessitates some colleagues to depart from the company.