Microsoft has shut down a number of Bethesda studios, including Redfall developer Arkane Austin and Hi-Fi Rush and The Evil Within developers Tango Gameworks, reports IGN.
Alpha Dog Studios, the developer of the mobile game Mighty Doom, will also cease operations. Roundhouse Games will be absorbed by ZeniMax Online Studios, the developer of The Elder Scrolls Online. It is not specified how many employees will lose their jobs, but significant layoffs are inevitable.
Microsoft reported that Redfall will remain available for online play, but it will not receive the promised updates — those who purchased Hero DLC will be compensated.
Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
In an email to employees sent by Matt Booty, head of Xbox Game Studios, Microsoft blamed the cuts on «reprioritization of titles and resources».
The announcement of the cuts at Bethesda came 3 months after Microsoft announced plans to cut 1,900 video game employees, and against the backdrop of the boom of the Fallout series from Bethesda after release of the TV adaptation on Prime Video.
Tango Gameworks is closing down a little over a year after the launch of Hi-Fi Rush, which many considered one of the best Xbox games in recent years.
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024
In a series of tweets, Arkane Lyon head Dinga Bakaba criticized the cuts, calling them «terrible».