Microsoft closes 4 game studios

According to IGN, Microsoft Xbox has decided to shut down four gaming studios, including the renowned Arkane Austin and Tango Gameworks.

The closures affect Arkane Austin, Tango Gameworks, Roundhouse Games, and Alpha Dog Games. Arkane Austin, known for its acclaimed titles such as “Prey” and the “Dishonored” series, had developed “Redfall” following its acquisition by Microsoft. Tango Gameworks, celebrated for “The Evil Within” and “Ghostwire: Tokyo,” had recently released “Hi-Fi Rush” under Microsoft’s ownership. Roundhouse Games, with notable works like “Dead Man’s Hand” and the “Rune” series, will see its team join the ZeniMax Online Studios, currently handling “The Elder Scrolls Online,” following the studio’s closure. Alpha Dog, a mobile game studio, is best known for “Mighty Doom.”

Next-generation Xbox console

Following the announcement, Arkane Studios stated on Xbox’s official blog that the latest update for “Redfall” would be its final, marking the end of the game’s development. However, the game servers will continue to operate, allowing players to continue their gameplay. Additionally, due to the unfulfilled promises regarding an offline mode and the new character DLC, the studio will offer “compensatory discounts” to players who purchased the Hero DLC.

IGN reports that after the decision to close the four studios, Xbox’s senior executive Matt Booty sent an email to the employees of these studios, attributing the closures to a “reprioritization of titles and resources.” The email, as cited by IGN, reads: “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.

To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success. This reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.