Microsoft recently made the decision to close several Bethesda-owned game studios, including Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Studios. This move is part of a larger effort by the Xbox parent company to shift its focus onto what they consider to be their “priority games.” This decision has raised concerns within the gaming community, as it means the end of development for certain titles and the potential loss of jobs for many employees.
The news of these studio closures was initially reported by IGN and was later confirmed by the affected studios themselves, including Tango Gameworks and Arkane. Both studios took to social media to share the unfortunate news with their fans and the gaming community. The shutdowns come in the wake of a series of layoffs at Xbox and Activision Blizzard earlier this year, which left nearly 1,900 roles redundant.
One of the most significant impacts of these closures is the halt in development for games such as Redfall, created by Arkane Austin. This vampire shooter game was released in May 2023 to mixed reviews, leading to Microsoft Gaming CEO Phil Spencer taking full responsibility for its disappointing launch. Despite Spencer defending the developer at the time, the game will no longer receive updates, and the studio responsible for its development will cease operations.
On the other hand, Tango Gameworks, the studio behind Hi-Fi Rush, had seen success with their rhythm-based action title. Microsoft praised the game as a “break out hit” and expressed satisfaction with its performance across various metrics. However, despite this success, Tango Gameworks will also be closing its doors due to the recent cuts imposed by Microsoft.
According to an internal email from Xbox Game Studios head Matt Booty, the closures are aimed at prioritizing “high-impact titles” and investing in “blockbuster games” from Bethesda. The company is looking to realign resources and focus on their top-performing titles, leading to the unfortunate layoffs and studio closures. This strategic decision will allow Microsoft to allocate resources more efficiently and focus on their most promising projects.
While Microsoft has not yet made an official announcement regarding the closures, the company is scheduled to host an Xbox Games Showcase event on June 9th. During this event, Microsoft will reveal its upcoming lineup of exclusive and third-party titles, giving fans a glimpse into the future of gaming on Xbox platforms. This event will help shed light on the company’s long-term plans and how they intend to navigate these recent changes within their gaming division.
The closures of these Bethesda-owned studios are just the latest in a series of layoffs and studio shutdowns within the gaming industry. Major studios like Riot Games, Eidos-Montréal, Sony, Electronic Arts, Embracer Group, and Take-Two Interactive have all faced similar challenges this year, leading to widespread uncertainty in the industry. Microsoft’s decision to make these cuts following the acquisition of Activision Blizzard earlier this year has further heightened concerns about the future of game development and job security within the industry.
Microsoft’s decision to close several Bethesda-owned studios has sent shockwaves through the gaming community. The impact of these closures will be felt not only by the employees who have lost their jobs but also by the fans who will miss out on anticipated titles. As the industry continues to navigate these changes, it is essential for companies to prioritize their resources effectively and ensure a sustainable future for game development.
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