Microsoft is closing several studios, including Tango Gameworks, developer of Hi-Fi Rush, and Arkane Austin, creator of Redfall.

Microsoft is closing four Bethesda Softworks studios, including Rush to Hi-Fi developer Tango Gameworks and Red fall the Arkane Austin team. In an email to staff obtained by IGN, Matt Booty, head of Xbox game Studios, explained that the decision was “based on a focus on high-impact titles and additional investment in Bethesda’s portfolio of […]

Microsoft is closing several studios, including Tango Gameworks, developer of Hi-Fi Rush, and Arkane Austin, creator of Redfall.

Microsoft is closing four Bethesda Softworks studios, including Rush to Hi-Fi developer Tango Gameworks and Red fall the Arkane Austin team.

In an email to staff obtained by IGN, Matt Booty, head of Xbox game Studios, explained that the decision was “based on a focus on high-impact titles and additional investment in Bethesda’s portfolio of hit games and beloved worlds.” He described the move as part of a “re-prioritization of titles and resources” that will see “some teams realigned with others” and an unspecified number of employees losing their jobs.

The email also describes the full scope of the changes. In addition to the closure of Tango Gameworks and Arkane Austin, support studio Roundhouse Studios (which Booty apparently incorrectly calls “Roundhouse Games”) will be integrated into The Elder Scrolls online developer ZeniMax Online Studios. Alpha Dog Games (which Booty seems to mistakenly call “Alpha Dog Studios”), the developer of the mobile title Powerful destiny, will also be closed. This is in addition to the elimination of “a small number of positions” in the publishing arm of the company.

The news is accompanied by the announcement of the development of Red fall has ceased and that players who purchased the premium “Bite Back Edition” of the game will be eligible to “receive the value of the upgrade” as compensation. This was detailed in a recent post to the official Redfall X / Twitter account which then specifies that “the game servers will remain online for the enjoyment of players”.

Although the number of employees affected is not yet fully known, we hope that everyone affected by these studio closures can get back on their feet. Neither Microsoft nor Bethesda have responded to a request for comment from TechRadar at this time.

Analysis: what is happening?

I really struggle to understand the logic of this decision, especially regarding the closure of Tango Gameworks. The studio’s most recent title, Rush to Hi-Fi, was a critical success that seemed to resonate well with gamers. I gave the PlayStation 5 version of the game four out of five stars in our Rush to Hi-Fi review, drawing particular attention to its incredibly unique rhythm-based combat system and stunning art direction.

Initially exclusive to the console, the game is now available on multiple platforms but remains a real highlight of the Xbox catalog and definitely increases the appeal of a game subscription service like Xbox game Pass Ultimate. The studio’s older titles, such as Ghost Thread: Tokyo And The evil within 2 may not have made as much of a splash when it launched, but nonetheless stands out with high-quality experiences that paint a picture of a team full of potential.

Arkane Austin’s closure might make a bit more sense given the overwhelmingly negative critical reception of its recent multiplayer vampire-fighting first-person shooter (FPS). Red fall, although it still seems like an incredibly short-sighted decision. The studio’s previous project, the sci-fi horror game Preyis something of a hidden gem and shows the team’s serious innovation capability.

I remain concerned about the overall trajectory of the Xbox brand and the leadership culture at Microsoft. It seems that those in charge don’t really understand the value of more specialized titles like these.

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