In yet another round of studio closures and layoffs, Microsoft has entered the fray with the shock announcement regarding a number of its studios. The studios include Arkane Austin (Prey, Redfall), Tango Gameworks (The Evil Within, Ghostwire Tokyo, Hi-Fi Rush), Alpha Dog Games (Mighty Doom), and Roundhouse Games, with that last closure being due to Zenimax Online Studios absorption of said studio.
On the topic of Redfall, the game’s future content has been taken off the table, forcing the refunding of Hero Pass purchases as a part of the Bite Back Edition. The refund should equate to the value of the upgrade cost from the regular edition to the Bite Back Edition. Redfall’s servers will remain online for the time being, though it’s not hard to imagine those being closed at some point in the near future too.
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— Arkane Studios (@ArkaneStudios) May 7, 2024
These closures and cuts were announced via an email sent to staff by Xbox Games Studio head, Matt Booty. Verified by IGN, the email reads as follows:
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
Among the studios to survive this vicious cuts are id Software (DOOM), MachineGames (Wolfenstein: The New Colossus and the upcoming Indiana Jones game), Bethesda Game Studios (Elder Scrolls, Fallout, and Starfield) and Arkane Lyon (Dishonored, Deathloop, and Marvel’s Blade).
Microsoft is yet to comment on exactly how many jobs are being cut, but given how many closures there are it’s hard to imagine anything that isn’t a staggeringly large number of layoffs.
These closures would be concerning for Microsoft’s other acquired studios like Ninja Theory, whose highly anticipated Senua’s Saga: Hellblade II is launching later this month. While it seems that the Bethesda side of Microsoft copped the brunt of these layoffs and closures, it would not be surprising if the higher ups at the platform holder/publisher would look to cut more fat (fat caused by reckless spending and mismanagement, not the fault of the developers themselves).
