Microsoft is shutting down the studio behind Hi-Fi Rush and three more under its Bethesda wing in a move to prioritize "high-impact titles."
In an email to staff via IGN, Xbox Game Studios president Matt Booty announced the closure of the Hi-Fi Rush studio Tango Gameworks, Redfall developer Arkane Austin, and mobile game Mighty Doom maker Alpha Dog Games.
(Photo : Tango Gameworks/Bethesda/Xbox)
Meanwhile, Roundhouse Studios will be absorbed by ZeniMax Online Studios, developer for The Elder Scrolls Online.
The decision is expected to cause mass layoffs across the affected game studios, although Microsoft and Xbox did not provide an exact number.
Shuttered Bethesda Studios to Sunset Development, Live Service of Games
Arkane Austin has already confirmed the reports on X (formerly Twitter), stating that its sister studio in France will continue development for all of its future projects.
Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
Mighty Doom will also close its live services by Aug. 7, "turning off the ability for players to make any purchases in the game."
Hi-Fi Rush was the winner of the 2024 BAFTA Animation Award and the 2023 The Game Award for Best Audio Design.
Despite critical acclaim, insider reports hinted that Xbox was not particularly happy with its sales numbers, while Redfall's bug-filled release only further hurt its already poor sales.
Also Read: Ubisoft Abandons Watch Dogs Game Series, Leaker Reports
Microsoft Acquisition of Bethesda Blamed for Studios' Closure
Amid shutdowns, many players and developers were noticeably upset with Microsoft and Xbox for the cost-cutting move.
Even Arkane Lyon head Dinga Bakaba took the chance to criticize the "absolutely terrible" decision, reminding executives not to "throw us into gold fever gambits."
This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.
— Dinga Bakaba 451 (@DBakaba) May 7, 2024
Microsoft acquired Bethesda, along with the studios under its wing, for $7.5 billion to boost its Xbox catalog.
The acquisition was followed by several corporate reorganizations that resulted in many longtime leaders of the studios leaving in the process.
Among those was Tango Gameworks founder Shinji Mikami who previously led the studio to make its other well-known titles like The Evil Within and Ghostwire: Tokyo.
Mikami has since started another studio, Kamuy, to have more creative control over his projects and move away from horror titles.
Related Article: Unity to Cut Off 25% of Its Workforce for Company Restructuring
