After layoffs earlier this year that impacted Activision Blizzard, ZeniMax and Xbox, Microsoft has shuttered four major studios under Bethesda. Arkane Austin (Redfall), Tango Gameworks (Hi-Fi Rush), Alpha Dog Studios (Mighty Doom), and Roundhouse Games will be shuttered due to a “reprioritization of titles and resources.” The number of employees laid off has not been specified.
In an internal email obtained by IGN, Xbox Game Studios head Matt Booty said, “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 some of our colleagues will be leaving us.”
Following its closure, some members from Arkane Austin will work with other Bethesda studios. Roundhouse Games will be folded into ZeniMax Online Studios to work on The Elder Scrolls Online. Alpha Dog Studios and Tango Gameworks will be closed outright, with Mighty Doom to be sunset on August 7th (with in-game purchases disabled).
Booty added, “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.” Microsoft will provide its “full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.”
He also noted that the closures are “not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things. I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”
Upcoming releases from Bethesda studios include MachineGames’ Indiana Jones and the Great Circle, Bethesda Game Studios’ Starfield: Shattered Space, The Elder Scrolls Online: Golden Road, Fallout 76’s Skyline Valley update and Marvel’s Blade from Arkane Lyon. id Software is rumored to be working on DOOM: Year Zero. Stay tuned for more updates, especially with the Xbox Games Showcase on June 9th.
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024
Players interested in requesting a refund for purchased in-game currency can sign up here http://t.co/R7rL4LKsjk to receive details. pic.twitter.com/9g3kBoRGVw
— Alpha Dog Games (@AlphaDogGames) May 7, 2024
Signup here http://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
