Microsoft closes multiple Bethesda studios in new round of devastating cuts

Microsoft has announced the closure of at least four developer studios under its Bethesda branch, including Arkane Austin, the studio behind Redfall, and Tango Gameworks, the creators of Hi-Fi Rush and The Evil Within.

According to an internal email sent to studios by Matt Booty, the head of Xbox Game Studios, Microsoft has decided to blame the inevitable job cuts on its initiative of "reprioritization of titles and resources". The email states the team at Arkane Austin will be closing, and some members of the team will be going to other teams at Bethesda.

Alpha Dog Studios, the developers of the mobile game Alpha Dog, will also be closing, along with the internal development studio Roadhouse Games, which will be merged into ZeniMax Online Studios, which is working on titles such as The Elder Scrolls Online. As for Tango Gameworks, the developer behind Hi-Fi Rush, Booty, thanked the team for their work and said the game will remain available to players, the same as Redfall.

"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," wrote Booty

Notably, the closure of the studio behind Redfall will mean no future updates for the game and offers will be made to those who have purchased Redfall's hero DLC. Furthermore, this is now the second wave of lay offs at Xbox Game Studios, with nearly 2,000 developers being fired from Activision Blizzard in January, following Microsoft's successful acquisition completion in October, 2023.

Read the full email from Matt Booty, the head of Xbox Game Studios, here.