According to Moon Studios ' CEO, the unfortunate closure of Hi-Fi Rush developer Tango Gameworks and Prey, Redfall developer Arkane Austin may not be as senseless as it appears.
Speaking on X/Twitter following the confirmation of the two studios' closure, Thomas Mahler highlighted how it's quite likely that there have been "inner dealings" for a while that could explain the two studios' closure, as he has rarely seen decisions being made on this scale that make absolutely no sense. It could be that Microsoft had previous discussions with these studios, and the decision to close them was made so that they could reform in a more efficient way and make deals with these new ventures again.
Related Story Deathloop Director Says Arkane Austin Closure a “F**king Gut Stab,” Redfall Development Done
Using Tango Gameworks' Hi-Fi Rush as an example, Thomas Mahler highlighted how having the core team form a new venture could be the only way to make more of this type of game, allowing the team to focus on it while doing away with the "likely bloated" setup they had before. In addition, letting a talented team that has produced a GOTY candidate go and potentially offer their next title to another publisher would be dumb on Microsoft's part since it would mean they would be happy to burn bridges with talented developers who could immediately make deals with the competition. This could still be the case, but these dealings are usually more complex than they appear.
Tango Gameworks and Arkane Austin weren't the only two studios Microsoft closed yesterday. Mobile developer Alpha Dog Games was shut down alongside the Hi-Fi Rush and Prey developers. Roundhouse Studios, on the other hand, will be absorbed by ZeniMax Online to work on The Elder Scrolls Online.
Mobile
CEO
Thomas Mahler