Microsoft announced the closure of several studios, including Arkane Austin, Tango Gameworks, and Alpha Dog Games. The decision also involves folding Roundhouse Studios into ZeniMax Studios Online. Tango and Arkane confirmed the closures on social media, with Arkane revealing the halt in development for the live-service game Redfall. Additionally, Microsoft is sunsetting Alpha Dog’s title Mighty Doom. The impact on employees due to these closures is yet to be determined.
Xbox head Matt Booty explained the rationale behind these changes, stating, “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.” While some studios like Bethesda and Arkane Lyon continue their operations on in-development titles, layoffs seem inevitable for the affected employees.
Tango Gameworks, known for titles like Hi-Fi Rush, The Evil Within 2, and Ghostwire Tokyo, faces an uncertain future. Similarly, Arkane Austin, the studio behind Redfall, Prey, and Dishonored 2, is working on refunds for players who purchased premium editions of Redfall, as the game will no longer receive updates or promised premium content.
In response to the closures, Dinga Bakaba, studio director at Arkane Lyon, emphasized the human aspect of the industry, urging executives to prioritize the well-being of their artists and entertainers. He stated, “Lyon is safe, but please be tactful and discerning about all this, and respect affected folks’ voice and leave it room to be heard, it’s their story to tell, their feelings to express.” The gaming community awaits further updates on the aftermath of these studio closures.