Microsoft to Dissolve Four Bethesda Studios

As part of its efforts to optimize resources, Microsoft has announced the shutdown of four studios acquired through its 2020 Bethesda purchase, according to reports from IGN. The affected studios include Arkane Austin, known for its role in developing Redfall, and Tango Gameworks, the creative force behind Hi-Fi Rush, Ghostwire: Tokyo, and The Evil Within. Additionally, Alpha Dog Studios, the developer behind Mighty Doom, and Roundhouse Games, which succeeded Human Head Software, will also cease operations. In a staff email, Xbox Game Studios head Matt Booty explained that the decision to close these studios is aimed at focusing resources on high-impact titles and enhancing the overall Bethesda game portfolio. Booty stated, "To further invest in these franchises and develop new ones, we must assess our business and identify opportunities with the greatest potential for success." This realignment of priorities means some teams will be integrated into other studios, and a number of colleagues will be leaving the company. Specifically, some Arkane Austin developers will be relocated to other Bethesda studios, while the entire Roundhouse team will join Zenimax Online Studios to work on The Elder Scrolls Online. Furthermore, a limited number of employees in Bethesda's publishing and corporate divisions will also face layoffs. Regarding the games in development by these teams, Redfall will no longer receive content updates, and customers who purchased the "Hero Pass" DLC will receive some form of compensation. Meanwhile, Alpha Dog's mobile game Mighty Doom will be discontinued on August 7. This move follows Microsoft's January announcement of 1,900 layoffs within its gaming division, although it is unclear whether these cuts are part of that initial round or an additional measure.