Hi-Fi Rush Studio Closes Down Despite Recent Success, Along With Two Other Bethesda Studios

Microsoft's Xbox has announced the closure of several studios under ZeniMax Media, affecting Bethesda Softworks' publishing arm and impacting the future of several game franchises.

Xbox Shutters Three Bethesda Studios Just Months After Layoffs at Activision Blizzard

Reprioritization of Titles and Resources, As Well As Further Investing in Bethesda's Blockbuster Titles

The shut down of several Bethesda studios under ZeniMax Media, including Arkane Austin, Tango Gameworks, and Alpha Dog Games was announced by head of Xbox Game Studios Matt Booty in an email to staff. The studio closures came as a part of a broader reprioritization of titles and resources within the company.

"These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades," Booty explained. Though no specific 'blockbuster' games were mentioned, these include titles like Starfield, Fallout, and The Elder Scrolls.

The Texas-based arm of the French game developer, Arkane Austin, known for its work on titles like Dishonored and Redfall, will be closing, with some team members being reassigned to other studios within Bethesda to work on new projects. This also meant the end of active development for Redfall. However, the game's servers will remain online for players, and "make-good offers" will be offered to those who purchased the Hero DLC.

Similarly, Tango Gameworks, the Japan-based developer behind The Evil Within series, will also be closing its doors. The studio's latest release, the critically-acclaimed Hi-Fi Rush, will continue to be available to players on its current platforms. Meanwhile, Alpha Dog Games, a Canadian studio acquired by ZeniMax Media, will also be shutting down. The mobile title Mighty DOOM, developed by Alpha Dog Games, will be sunsetted, with in-game purchases disabled.

In addition to the studio closures, Roundhouse Games will be joining ZeniMax Online Studios (ZOS) to work on The Elder Scrolls Online. "With this consolidation of our Bethesda studio teams, so that we can invest more deeply in our portfolio of games and new IP, a small number of roles across select Bethesda publishing and corporate teams will also be eliminated," Booty stated in the email.

Arkane Lyon Boss Expresses Grievance, while Matty Booty Defends Phil Spencer

Microsoft's decision to close these studios was met with criticism from people across the gaming community, who argue that mismanagement and corporate greed are to blame. In particular, Arkane Lyon boss Dinga Bakaba, who expressed his views and hurt on Twitter (X) following the announcement of the studio closures.

"This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you."

"For now, great teams are sunsetting before our eyes again, and it's a f*cking gut stab," Bakaba added. "Lyon is safe, but please be tactful and discerning about all this, and respect affected folks' voice and leave it room to be heard, it's their story to tell, their feelings to express."

However, Xbox boss Phil Spencer received support from industry veterans like ex-Blizzard president Mike Ybarra, who vouched for Spencer's commitment to the creative process and developers. "I see a lot of shots at Phil over today's Xbox announcements. I get it. But knowing him as a human, I know this hurts him as much as anyone else," Ybarra posted on Twitter (X).

"I'm not trying to defend the decisions. I think we all get ourselves into situations that are tough and unexpected (certainly I have)," he continued. " It's certainly a tough time that needs great clarity into what the plan ahead is and how gamers everywhere can be excited for it."

As Microsoft Gaming faces its second big wave of layoffs in a few months, the company's greater plans ahead are placed under a microscope. Earlier this year, Microsoft laid off 1900 people across Activision Blizzard, Xbox Game Studios, and ZeniMax Media, placing the company in hot water with the Federal Trade Commission as the layoffs were contended as a contradiction to its merger acquisition.

Source:
Microsoft closes Bethesda's Arkane Austin, Alpha Dog Games, and Tango Gameworks, kills off one of its best new franchises in years in the process
Ex-Blizzard boss says Phil Spencer will be ‘hurting as much as anyone else’ over Xbox studio closures
‘A f***ing gut stab’: Arkane boss criticises Microsoft execs for studio closures

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Charlene Aguila

A huge enthusiast of interactive games, turn-based RPGs, and horror-survivals that let you fire a gun. Her love for gaming started with the Shin Megami Tensei franchise and Dino Crisis. Although she'd try any game there is in the world, she will always have the biggest room in her heart for titles..