Following Microsoft’s decision to shut down several Bethesda-owned game studios, including the likes of Tango Gameworks and Arkane Austin, it is evident that the tech giant is making a strategic shift in focus towards its “priority games”. The closure of Alpha Dog Games and Roundhouse Studios also points towards a restructuring within the Xbox parent company.
Tango Gameworks and Arkane, in separate posts, confirmed the news of their closures after the initial report by IGN surfaced. This move comes on the heels of previous layoffs within the Xbox and Activision Blizzard teams earlier in the year, affecting nearly 1,900 roles.
With the closure of Arkane Austin, development on their last project, Redfall, has come to a halt. Despite the negative reception of the game upon its release, Microsoft Gaming CEO Phil Spencer took responsibility for its shortcomings. On the other hand, Tango Gameworks’ title, Hi-Fi Rush, was deemed a success, yet the studio did not escape the recent wave of cuts.
An internal email from Xbox Game Studios head, Matt Booty, mentioned that the closures were necessary to prioritize “high-impact titles” and invest further in “blockbuster games” from Bethesda. While the exact number of layoffs remains unconfirmed, the email alluded to realigning teams and letting go of some colleagues to achieve these goals.
Microsoft’s decision to downsize its studios and shift its gaming portfolio’s focus reflects a broader trend within the industry. Major players like Riot Games, Sony, Electronic Arts, and others have also undergone significant layoffs in recent times, indicating a period of transition and reevaluation for many companies.
As Microsoft prepares to showcase its exclusive and third-party titles at the upcoming Xbox Games Showcase event, the repercussions of the recent studio closures and job cuts remain to be seen. The company’s commitment to prioritizing certain projects while scaling back others underscores the competitive and evolving nature of the gaming industry.
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