Microsoft Shuts Down Hi-Fi Rush Developer Tango Gameworks, Redfall Maker Arkane Austin, Other Bethesda Studios

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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.

Bethesda-owned Arkane Studios, which comprised of Arkane Lyon and Arkane Austin teams, confirmed on X that the latter would close and cease all development on their last game, Redfall. The vampire shooter will get no further updates, but its servers will remain online for active players, the studio said.

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Redfall was released in May 2023 to largely negative reviews, leading to Microsoft Gaming CEO Phil Spencer taking “full responsibility” for the game's disastrous launch. Spencer, however, had defended developer Arkane Austin at the time and promised that Xbox would continue to work on improving the game.

While Redfall fell short of expectations, Hi-Fi Rush, in Microsoft's own words, was a “break out hit” across “all key measurements and expectations.” Aaron Greenberg, Vice President of Xbox Games Marketing, had said last year that Microsoft “couldn't be happier” with Tango Gameworks' rhythm-based action title. Yet, the studio did not survive the latest