Microsoft is shutting down four game studios, including the developer of the Bafta award-winning game Hi-Fi Rush. The decision affects other studios owned by Bethesda.
The Bafta award-winning game’s developer is being closed alongside other studios owned by Bethesda.
Microsoft has announced the closure of four studios, including Tango Gameworks, known for developing the BAFTA award-winning game Hi-Fi Rush.
The closure includes the Tokyo studio, Arkane Austin based in Texas, and Alpha Dog Studios from Canada. Additionally, Roundhouse Games in Wisconsin will be integrated into ZeniMax Online Studios, the developer of Elder Scrolls Online.
The exact number of job cuts resulting from these closures has not been disclosed by Microsoft. These changes are part of Microsoft’s subsidiary Bethesda, which it acquired for $7.5 billion in 2020.
Harvey Smith, the head of Arkane Austin, expressed his sentiments, stating, “I just want to say that I love all the people at Arkane Austin so much… Great times, hard times, we went through so much, together.”
Matt Booty, the Head of Xbox Games Studios, informed staff of the decision via email. He mentioned that development on Arkane Austin’s game Redfall would cease, with some team members transitioning to other studios. Microsoft plans to offer compensation to players who pre-ordered downloadable content for Redfall.
Booty explained that these changes are aimed at prioritizing high-impact titles and investing further in Bethesda’s portfolio of popular games and cherished worlds.
He also noted that there would be a reduction in a small number of roles across Bethesda’s publishing and corporate teams.
Following its release in 2023, Hi-Fi Rush garnered significant acclaim from critics, securing numerous end-of-year awards for its exceptional animation and sound design. However, concerns arose at Tango Gameworks when the game was included in the four titles Microsoft launched on competing consoles this year.
With founder Shinji Mikami’s departure to establish his own rival studio, Tango Gameworks faced a pivotal moment. The closure marked the end of an era for the studio behind beloved titles such as The Evil Within and Ghostwire: Tokyo. In a brief statement on X (formerly Twitter), the developer expressed gratitude to its fans for exploring the immersive worlds it crafted.
The decision sparked backlash from both gamers and industry insiders, with Dinga Bakaba, the studio head of Arkane Lyon, a sister studio of Arkane Austin, condemning the layoffs as “absolutely terrible.” In a post on X, Bakaba reminded executives of their responsibility to nurture talent and foster creativity within the entertainment industry.
This move adds to the ongoing wave of layoffs in an industry already reeling from significant job losses. Bethesda, a subsidiary of Microsoft, had announced cuts earlier in January 2024, amidst a workforce of approximately 22,000 people within the gaming division.
This news has definitely stirred up some controversy and disappointment among fans and industry insiders. Many are expressing their concerns about the impact of these closures on the gaming landscape and the future of beloved game titles. There’s a lot of speculation and questions swirling around about why these decisions were made and what it means for the gaming industry as a whole. It’s definitely a hot topic, and we’ll be keeping a close eye on how this situation develops. What are your thoughts on this news? Let’s start a discussion and share our thoughts about the latest events in the gaming world.
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