Xbox shuts down several studios

Xbox has announced that it is shutting down several studios and that it is undergoing cuts affecting many developers working under Bethesda, including Redfall’s Arkane Austin. This bodes nothing good for the vampire shooter game, and the expectant DLC will not release after all.

Tango Gameworks, the developers behind Hi-Fi Rush and The Evil Within, will also be shutting down. Alpha Dog Games, a studio at Mighty Doom, will also be shutting down and its game will be pulled offline on August 7.

Roundhouse Studios will be merged with ZeniMax Online Studios, which works on The Elder Scrolls Online. Many jobs are also being cut over at Bethesda’s corporate and publishing teams.

Xbox game studios head Matt Booty sent an email to his staff yesterday morning with the news. The email was first reported by IGN. The cuts were, according to Booty, “grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds.”

“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,” Booty wrote.

Tango Gameworks on X confirmed the closure, writing: “Today it was announced that Tango Gameworks will close. Thank you to everyone that explored the worlds we created. Hi-Fi Rush along with Tango’s previous titles will remain available and playable everywhere they are today.”

Arkane Austin’s closure was also confirmed by Arkane Studios over on X, alongside confirmation that Redfall’s development was ending. There had been plans to add an offline mode to Redfall and there was talk of a DLC, but these things have all been apparently canceled with the closure of the studio. The game will remain online for now, however.

Arkane Austin had been founded back in 2006 and had developed the Dishonored series, one of the best games of all time and one of the most popular games released by Arkane.

“To everyone that has supported the work from our Austin studio over the years, thank you,” the studio wrote. “Thank you for spending time in our worlds and making them your own.”

Many who purchased the Redfall Hero Pass or premium Bite Back upgrade will “be eligible to receive the value of the upgrade,” as it seems that the content they had paid for will no longer be delivered.

In his email, Booty confirmed that “Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities.”

The response from developers across the industry has been one of condemnation, with Arkane Austin’s boss Dinga Bakaba writing: “This is absolutely terrible. To any executive reading this, friendly reminder that video games are an entertainment/cultural industry. Your business as a corporation is to take care of your artists/entertainers and help them create value… great teams are sunsetting before our eyes again, and it’s a fucking gut stab.”

Microsoft acquired Bethesda back in 2020 for $7.5 billion. Today, the studios remaining under Bethesda are Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, and ZeniMax Online Studios.


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Zainah Yousef is the author of The Fallen Age Saga and specializes in gaming, social media advice, and reviews. She's been writing all her life and she probably won't stop anytime soon.

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