Xbox Closes 4 Bethesda Studios, Gamers Are Stunned

The video game industry is in turmoil, and you wouldn’t think that’s the case because of the quality of games we have been getting. While we, as gamers, are enjoying a spoil of riches, developers continue to lose their jobs at a ridiculous clip. Xbox is navigating choppy waters as it shifts its business model, putting some of its biggest exclusive titles on competitive consoles. One of those titles was the beloved Hi-Fi Rush from Tango Gameworks, one of the many studios Xbox acquired when it acquired Bethesda Game Studios.

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In a stunning turn of events, Tango Gameworks is one of four studios, including Arkane Austin, the developer of the massive flop Redfall, Alpha Dog Studios, which have been closed by Xbox, Roundhouse “will be joining ZeniMax Online Studios (ZOS),” IGN reports. Xbox is one of the many video game companies that have been unable to avoid the massive layoffs in the industry. The Microsoft company started the year by laying off almost 2,000 employees, which led to then-Blizzard president Mike Ybarra leaving. Now comes the news of a new round of layoffs due to significant studio closures under the Bethesda umbrella.

Per GameRant:

Xbox has decided to shut down Arkane Austin, Alpha Dog Studios, and Tango Gameworks, with Roundhouse Games also effectively shutting down by being “absorbed” by ZeniMax Online Studios. In an email from Matt Booty obtained by IGN, it was explained that these shutdowns are about “prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games.” Arkane Austin worked on the 2017 Prey game and Redfall, Tango Gameworks was known for The Evil Within and the critically-acclaimed Hi-Fi Rush, Alpha Dog Studios was working on the Mighty Doom mobile game, and Roundhouse Games was primarily serving a support role at the time of its closure. Arkane Austin’s demise could directly result from Redfall’s disastrous launch. Reviewers immediately deemed it a critical flop due to its broken state at launch and abandoned it despite some quality-of-life improvements. In a statement on X, formerly Twitter, Arkane Studios confirmed the Austin studio’s closure, telling gamers who bought the Hero Pass of the premium Bite Back edition or Bite Back upgrade will be eligible to receive the value of the upgrade. Arkane says Redfall serves will remain online, but there will be no further updates. Tango Gamework’s closure is the biggest surprise due to Hi-Fi Rush’s success following its surprise drop on the Xbox Game Pass and, most recently, its newfound popularity on the PlayStation 5 console. The studio touched its closure by writing on X, “Thank you to everyone who explored the worlds we created. Hi-Fi RUSH along with Tango’s previous titles will remain available and playable everywhere they are today.

A Breakdown of The Changes To Bethesda & ZeniMax Teams Per Matt Booty:

Arkane Austin – This studio will close with some members of the team joining other studios to work on projects across Bethesda. Arkane Austin has a history of making impactful and innovative games and it is a pedigree that everyone should be proud of. Redfall’s previous update will be its last as we end all development on the game. The game and its servers will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC. 

Alpha Dog Studios – This studio will also close. We appreciate the team’s creativity in bringing Doom to new players. Mighty Doom will be sunset on August 7 and we will be turning off the ability for players to make any purchases in the game.  Tango Gameworks – Tango Gameworks will also close. We are thankful for their contributions to Bethesda and players around the world. Hi-Fi Rush will continue to be available to players on the platforms it is today.

Roundhouse Games – The team at Roundhouse Games will be joining ZeniMax Online Studios (ZOS). Roundhouse has played a key role in many of our recent game launches and bringing them into ZOS to work on The Elder Scrolls Online will mean we can do even more to grow the world that millions of players call home.  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. 

What a spooky time to be a developer in the video games industry. You can see reactions to the sad news in the gallery below.

1. No lies detected

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