Microsoft has decided to close several Bethesda game studios, including those developing Redfall, Xbox Studios head Matt Botti announced in an email to employees and to Arkane Austin Studios for Tango. Studio Gameworks, which develops games like Hi-Fi Rush.
According to the email, the reason for the closure is a reprioritization of games and resources. These changes are based on prioritizing impactful games and continuing to invest in Bethesda's popular game portfolio.
Microsoft plans to move some employees from the affected studios while closing other studios entirely.
Redfall developer Arkane Austin will close its doors and some team members will join other studios to work on projects for Bethesda, Botti said.
The latest Redfall update is the last as Microsoft has completed all the development of the game.
“The servers stay online for players to enjoy and we offer discounts to players who purchase Heroes DLC,” Botti said.
Tango Gameworks, the developer of Hi-Fi Rush, is also closing its doors and it doesn't look like any of the team members will be joining other Bethesda studios.
“Hi-Fi Rush remains available to players on all platforms,” Botti said. Hi-Fi Rush has already been released on PS5 and has received numerous awards, nominations and critical acclaim.
“Hi Fi Rush has been an incredible success for us in every way,” said Aaron Greenberg, Vice President of Games Marketing for Xbox on
Microsoft will also shut down Alpha Dog Games, developer of the mobile game Mighty Doom.
“Mighty Doom ends on August 7th and players will no longer be able to make in-game purchases,” Botti said.
Microsoft is also moving the team from Roundhouse Studios to ZeniMax Online Studios to develop The Elder Scrolls Online.
Earlier this year, Microsoft laid off up to 1,900 employees at Xbox Studios and Activision Blizzard.
It's unclear how many employees will be affected by the new closures, which have led to a near-constant wave of layoffs and closures across the video game industry in recent months.