Microsoft Shuts Down Hi-Fi Rush Developer Tango Gameworks, Redfall Maker Arkane Austin, Other Bethesda Studios

Arkane Austing confirmed on X that it would close and cease all development on Redfall.

Written by Manas Mitul | Updated: 8 May 2024 12:33 IST

Microsoft Shuts Down Hi-Fi Rush Developer Tango Gameworks, Redfall Maker Arkane Austin, Other Bethesda Studios

Photo Credit: Tango Gameworks

Hi-Fi Rush released on PC and Xbox Series S/X in January 2023

Highlights

Hi-Fi Rush was recently released on PS5
Tango Gameworks also made The Evil Within series and Ghostwire: Tokyo
Arkane Austin previosly worked on Prey and Dishonored

Microsoft has shuttered several Bethesda-owned game studios, including Hi-Fi Rush developer Tango Gameworks and Redfall maker Arkane Austin, in order to shift focus on to its “priority games”. The Xbox parent is also closing Alpha Dog Games, makers of the mobile game Mighty Doom, while Roundhouse Studios, which also contributed to Redfall development, will be absorbed by ZeniMax Online Studios. The development, initially reported by IGN, was confirmed by affected studios Tango Gameworks and Arkane in separate posts on X late Tuesday. The shutdowns come months after Microsoft announced layoffs at Xbox and Activision Blizzard earlier this year, which made 1,900 roles redundant.

The IGN report, citing an internal email to employees sent by Xbox Game Studios head Matt Booty, said the closures would lead to “significant layoffs,” but Microsoft has not yet confirmed the number of roles affected.

Bethesda-owned Arkane Studios, which comprised of Arkane Lyon and Arkane Austin teams, confirmed on X that the latter would close and cease all development on their last game, Redfall. The vampire shooter will get no further updates, but its servers will remain online for active players, the studio said.

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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

Redfall was released in May 2023 to largely negative reviews, leading to Microsoft Gaming CEO Phil Spencer taking “full responsibility” for the game's disastrous launch. Spencer, however, had defended developer Arkane Austin at the time and promised that Xbox would continue to work on improving the game.

While Redfall fell short of expectations, Hi-Fi Rush, in Microsoft's own words, was a “break out hit” across “all key measurements and expectations.” Aaron Greenberg, Vice President of Xbox Games Marketing, had said last year that Microsoft “couldn't be happier” with Tango Gameworks' rhythm-based action title. Yet, the studio did not survive the latest round of cuts. Tango Gameworks confirmed on X Tuesday that the studio would close, thanking players and announcing that its previous games, which include The Evil Within series and Ghostwire: Tokyo, would remain available and playable across all supported platforms.

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pic.twitter.com/KhhqgR902g
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024

The internal email from Booty cited in the report said that the shutdowns would help prioritise “high-impact titles” and continued investment in “blockbuster games” from Bethesda. Without putting a number on the resulting layoffs, the email said, “This reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.

“We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games,” the email added.

Microsoft is yet to make an official announcement on the cuts, but the company will hold an Xbox Games Showcase event on June 9, where it will reveal its upcoming lineup of exclusive and third-party titles.

The latest round of shutdowns follows a spate of layoffs this year across major studios like Riot Games, Eidos-Montréal, Sony, Electronic Arts, Embracer Group, Take-Two Interactive and more. Back in January, Microsoft laid off 1,900 employees at newly acquired Activision Blizzard and Xbox — an eight percent reduction of its overall gaming division.

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Hi-Fi Rush

KEY SPECS
NEWS

Genre Action-Adventure

Platform Xbox Series S/X, PC: Windows

Modes Single-player

PEGI Rating 12+

More Bethesda Games

Redfall

KEY SPECS
NEWS

Genre Shooter

Platform Xbox Series S/X, PC: Windows

Modes Single-player, Multiplayer

PEGI Rating 18+

More Bethesda Games

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Further reading: Arkane Austin, Tango Gameworks, Bethesda, Microsoft, Xbox, Redfall, Hi Fi Rush

Manas Mitul

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In his time as a journalist, Manas Mitul has written on a wide spectrum of beats including politics, culture and sports. He enjoys reading, walking around in museums and rewatching films. Talk to Manas about football and tennis, but maybe don’t bring up his video game backlog. More