Microsoft Shuts Multiple Game Studios For ‘Repriotization of Titles’

In an email, sent by the head of Xbox Game Studios Matt Booty, it was announced that Microsoft is shutting down several game studios. The list includes Redfall developer Arkane Austin, Hi-Fi Rush developer Tango Gameworks, Alpha Dog Games, and more. The email says, as reported by IGN, the reason for the closure of these studios is due to a “reprioritization of titles and resources.”

Some staff at the shut studios will be moved to other teams while other studios will be shut completely. Redfall developer Arkane “will close with some members of the team joining other studios to work on projects across Bethesda,” says Booty. 

Redfall’s previous update will be its last as Microsoft is stopping all development on the game. Servers “will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC,” says Booty.

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No Hi-Fi Rush Developers To Join Bethesda

Hi-Fi Rush developer Tango Gameworks is also shutting, and it seems no members of the team will be moved to other Bethesda studios. “Hi-Fi Rush will continue to be available to players on the platforms it is today,” says Booty.

Hi-Fi Rush recently hit the PS5 after getting multiple accolades, nominations, and critical acclaim. Aaron Greenberg, vice president of Xbox games marketing, took to X and wrote that Hi-Fi Rush was “a break-out hit for us in all key measurements and expectations.”

Alpha Dog Games is the third studio to shut. The studio has been the developer behind the famous mobile game Mighty Doom. “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,” says Booty. 

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Microsoft Admits The Changes Will Disrupt Bethesda

The company is also moving the team at Roundhouse Studios into ZeniMax Online Studios. These teams will now be focusing on The Elder Scrolls Online. Booty says the company is aware that these changes will be “disruptive” to Bethesda in a bigger scheme of things.

“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.”

Earlier this year, Microsoft let go of 1,900 employees across Xbox Game Studios and Activision Blizzard, which was acquired recently. It is still unclear how many employees will be affected by the recent closure of studios.