Microsoft shuts down Redfall developer Arkane Austin, Hi-Fi Rush developer Tango Gameworks, and more in devastating cuts at Bethesda

Microsoft has shut down a number of Bethesda studios, including Redfall maker Arkane Austin, Hi-Fi Rush, The Evil Inside developer Tango Gameworks, and more in devastating cuts at Bethesda, IGN can confirm.

Alpha Dog Studios, maker of the mobile game Mighty Doom, will also be closing. Roundhouse Games will be absorbed by The Elder Scrolls Online developer ZeniMax Online Studios. Microsoft did not say how many employees would lose their jobs. IGN has asked Bethesda and Microsoft for comment.

In Redfall, the disastrous co-op vampire game will not receive promised updates as Microsoft has ended all development on the game. Microsoft said Redfall will remain online to play, and will offer a “valid” offer to those who have purchased the Hero DLC.

In an email to employees sent by Matt Botti, head of Xbox Game Studios, Microsoft blamed the cuts on a “reprioritization of titles and resources.” The email, verified by IGN, is below:

Today I’m sharing the changes we’re making to the Bethesda and ZeniMax teams. These changes are based on prioritizing high-impact titles and continuing to invest in Bethesda’s portfolio of blockbuster games and beloved worlds that it has nurtured over many decades.

Multiplying these franchises and investing to build new franchises requires us to look across the business to identify the best opportunities for success. Reprioritizing titles and resources means that some teams will be reorganized to align with other teams and that some of our colleagues will leave us.

Below are the changes that take effect:

Arkane Austin – This studio will be closing with some team members joining other studios to work on projects across Bethesda. Arkane Austin has a history of making impactful and innovative games, one that everyone should be proud of. The previous update for Redfall will be the last update as we have finished all development on the game. The game and its servers will remain online for players to enjoy and we will offer good offers to players who have purchased Hero DLC.

Alpha Dog Studios – This studio will also be closing. We appreciate the team’s creativity in bringing Doom to new players. Mighty Doom will be ending on August 7 and we will be discontinuing players’ ability to make any in-game purchases.

Tango Gameworks – Tango Gameworks will also be closing. We are grateful for their contributions to Bethesda and players around the world. Hi-Fi Rush will still be available to players on the platforms it is on today.

Roundhouse Games – The Roundhouse Games team will join ZeniMax Online Studios (ZOS). Roundhouse has played a key role in many of our recent game launches, and bringing them to 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 Bethesda’s studio teams, so that we can invest more deeply in our portfolio of games and new intellectual property, a small number of roles across select publishing and corporate teams at Bethesda will also be eliminated.

Those whose roles will be affected will be notified today, and we ask that you treat your departing colleagues with respect and compassion. We will offer our full support to those affected by today’s notices and throughout their transitions, including severance benefits informed by local laws.

These changes do not reflect the creativity and skill of the talented individuals in these teams or the risks they took to try new things. I acknowledge that these changes also result in disruption to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these difficult decisions to create the ability to further invest in other parts of our portfolio and focus on our priority games.

Bethesda remains one of the mainstays of Xbox with a strong lineup of amazing games and thriving communities. As we look to the future, there is an exciting lineup 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 better prepare ourselves for success in this complex and changing industry, our teams across Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, ZeniMax Online Studios, and Bethesda’s publishing and corporate teams will stand up well. We are positioned to build new IP, explore new game concepts, and expand on our existing franchises.

– not shiny

Microsoft’s announcement of the cuts at Bethesda comes more than three months after the company announced plans to cut 1,900 employees from its video game workforce, and amid a boom period for Bethesda’s Fallout series following the hit Prime Video TV show. Tango Gameworks has shut down just over a year after the release of Hi-Fi Rush, considered by many to be one of the best Xbox games in recent years. Hi-Fi Rush launched on PS5 as part of Microsoft’s new cross-platform campaign in March. Microsoft is planning a showcase event in June to reveal the list of upcoming games and potential Xbox hardware plans.

Layoffs are sweeping the video game industry, with a number of high-profile studios cutting staff or closing their doors. In stark contrast to a year of blockbuster video game successes, one of the biggest ongoing industry trends in 2023 was the prevalence of mass layoffs, continuing into 2024. While actual numbers are hard to come by, estimates indicate the number of workers laid off in games Last year it approached or exceeded 10,000. A recent GDC survey of developers indicates that a third of game developers were affected by layoffs in the past year, either directly or by seeing them happen at their companies.

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Wesley is IGN’s UK news editor. You can find him on Twitter at @wyp100. You can contact Wesley at [email protected] or confidentially at [email protected].