Microsoft has announced the closure of several game development studios under its Bethesda Softworks umbrella, including Arkane Austin, the developer behind the vampire-themed shooter, Redfall. This move comes as part of a broader strategy to prioritize high-impact projects and streamline resources within the company.
Arkane Austin, along with other affected studios such as Tango Gameworks and Alpha Dog Games, will cease operations, marking a tumultuous period for the employees and their ongoing projects. Notably, the decision directly impacts the future of Redfall, which has been officially discontinued just a year after its release. Players who purchased the game's Hero DLC as part of the $100 Bite Back edition will be offered "make-good" deals, though specifics remain unclear.
Matt Booty, head of Xbox Game Studios, explained the rationale behind these closures in an internal email, highlighting the need to "double down on these franchises and invest to build new ones" as the primary driver behind the restructuring. This strategic shift involves reallocating team members from closed studios to other ongoing projects across Bethesda.
The layoffs and studio shutdowns are part of a larger wave of cutbacks within the gaming industry, which has seen a notable increase in job losses over the past year. According to industry estimates, these layoffs have impacted thousands, reflecting broader economic challenges and a shift in business strategies among major game publishers.
Amid the closures, certain Bethesda studios such as Arkane Lyon and MachineGames remain unaffected, with Arkane Lyon continuing its work on Marvel's Blade and MachineGames developing the upcoming Indiana Jones title, The Great Circle. These studios represent a continued investment in blockbuster games and beloved worlds, which Microsoft sees as vital to its long-term success in the gaming sector.
The decision to close Tango Gameworks comes just over a year after the launch of Hi-Fi Rush, which was well-received but reportedly did not meet sales expectations despite being labeled a "breakout hit" by Xbox Games Marketing VP Aaron Greenberg. The studio's closure underscores the precarious nature of game development, where critical success does not always translate to financial viability.
This restructuring reflects Microsoft's broader strategy to adapt to a rapidly changing gaming landscape, marked by shifts in consumer preferences and technological advancements. As the company focuses on strengthening its most successful franchises and exploring new opportunities, the closures are seen as necessary, albeit painful, adjustments to align resources with strategic goals.
The layoffs have stirred reactions within the gaming community and among the developers affected. Arkane Lyon chief Dinga Bakaba voiced his discontent, emphasizing the cultural and creative impact of such decisions on the gaming industry and calling for a more considerate approach during these challenging times.
