Microsoft Closes Redfall Developer, Hi-Fi Rush Studio Tango Gameworks and More Bethesda Studios

Sad to be the bearer of bad news to start your day, but mega corporation Microsoft has shuttered down a bunch of Bethesda studios including Redfall developer Arkane Austin, Tango Gameworks which is the studio responsible for The Evil Within franchise, Hi-Fi Rush and more.

The report comes from IGN who also confirms that Alpha Dog Studios (mobile game Mighty Doom) will also close down, while Roundhouse Games will be absorbed by The Elder Scrolls Online studio ZeniMax Online Studios. Microsoft has not mentioned how many jobs were lost, but it’s pretty significant given multiple studios were closed down.

This means that the promised updates to Redfall are now gone with the wind, as Microsoft has reportedly ended all development for the game, though online play will still be functional. For those who bought the “Hero” DLC, Microsoft is said to provide a “make good” offer though details about that weren’t shared.

Head of Xbox Game Studios Matt Booty sent out an email to Bethesda staff, where he cites that “reprioritization of titles and resources” as the cause of the closures. Read on for an excerpt of the letter sent to employees:

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.

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.

Those whose roles will be impacted will be notified today, and we ask that you please treat your departing colleagues with respect and compassion. We will provide our full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.

These changes 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.

Unaffected studios include Arkane Lyon, which is working on Marvel’s Blade, Bethesda Game Studios (Fallout, The Elder Scrolls, Starfield), is also safe, Machine Games (India Jones and The Great Circle), and id Software (Doom franchise) are also unaffected by today’s layoffs.

This new wave of job cuts adds to this year’s bloodbath when it comes to games industry layoffs. What’s interesting here is, while Redfall failed massively in all fronts, Hi-Fi Rush did not. It was seen as one of the best console exclusives on Xbox Series X|S before being available on PS5 as part of Microsoft’s multi-platform plan that started in March.

It’ll be interesting to see what this June’s Xbox Games Showcase will bring us given the recent layoffs. We here at MP1st hope the affected developers land on their feet and find work soon.

Microsoft acquired Bethesda back in Sept. 2020 in a massive $7.5 billion deal that saw all of Bethesda’s studios and IPs transfer ownership to the Windows giant.

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