Microsoft has shuttered several Bethesda-owned game studios, including Hi-Fi Rush developer Tango Gameworks and Redfall maker Arkane Austin, in order to shift focus on to its “priority games”.
The Xbox parent is also closing Alpha Dog Games, makers of the mobile game Mighty Doom, while Roundhouse Studios, which also contributed to Redfall development, will be absorbed by ZeniMax Online Studios.
The development, initially reported by IGN, was confirmed by affected studios Tango Gameworks and Arkane in separate posts on X late Tuesday.
The shutdowns come months after Microsoft announced layoffs at Xbox and Activision Blizzard earlier this year, which made 1,900 roles redundant.
The IGN report, citing an internal email to employees sent by Xbox Game Studios head Matt Booty, said the closures would lead to “significant layoffs,” but Microsoft has not yet confirmed the number of roles affected.