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Microsoft Makes Massive Cuts to Bethesda Studios, Closing Arkane Austin, Tango Gameworks, and Others

Microsoft has initiated a significant round of layoffs and budget cuts, resulting in the closure of major studios operating under Bethesda, including Arkane Austin and others.
By Shane Moosa | 
First Published May 7, 2024, 13:42
Microsoft Makes Massive Cuts to Bethesda Studios, Closing Arkane Austin, Tango Gameworks, and Others
Microsoft

The recent wave of layoffs and budget cuts in numerous prominent and sizable game studios has deeply unsettled the gaming industry, prompting widespread concerns about its future and stability. Unfortunately, this trend shows no signs of abating, with even tech and gaming behemoth Microsoft being forced to implement significant layoffs at certain Bethesda studios, and in some cases, shutting them down entirely.

If you're unfamiliar with this development and seek further information regarding the specifics of these recent layoffs and cuts, including which studios were impacted, you've come to the right place. We have all the details outlined below for your perusal.

Microsoft Makes Massive Cuts to Bethesda Studios, Closing Arkane Austin, Tango Gameworks, and Others

According to a recent report by IGN, an email has been sent to employees by Matt Booty, the head of Xbox Game Studios, detailing upcoming staff reductions at various Bethesda studios, some of which will be closed altogether. Among those slated for closure are Arkane Austin, the developer behind Redfall, Tango Gameworks, known for Hi-Fi Rush, and Alpha Dog Studios, among others.

Booty explained in the email that the primary reason for these layoffs and closures is a "reprioritization of titles and resources." While some studios will experience minor staff reductions, others will be entirely shut down, with team members potentially reassigned to other Bethesda projects.

For more specific details, Arkane Austin will cease operations, with some employees transitioning to other Bethesda studios. Alpha Dog Studios will close, and its flagship game Mighty Doom will be discontinued on August 7. Tango Gameworks will also shutter, though Hi-Fi Rush will remain available on its current platforms. Lastly, Roundhouse Games will be closed, with its staff absorbed by Bethesda's ZeniMax Online Studios (ZOS) to contribute to The Elder Scrolls Online.

Microsoft Make sHuge Cuts And Closes Down Some Of Bethesdas Studios
Although the recent upheaval has left us feeling shaken, we're optimistic that this will signal the conclusion of major layoffs within the gaming industry for the foreseeable future (we hope). (Picture: Bethesda)

While this news is undoubtedly distressing for the gaming community, as it underscores the current instability within the industry, particularly for those involved in game development, all one can hope for is that this marks the end of a wave of layoffs and studio closures for the foreseeable future. The aspiration is for the industry as a whole to rebound, creating more opportunities for the vast pool of talent within it.

Shane Moosa

Written by Shane Moosa

Shane started his career as a freelance writer for Gamezo while working full-time as a software developer. You can often find Shane trying his hand at no-hit runs of Souls Games such as Elden Ring and Dark Souls 3 (and being quite unsuccessful). To relax, Shane will often boot up sessions of Overwatch 2 or Hunt: Showdown, but his interests are spread across various games, from AAA titles (He loved the Dead Space Remake and RE4 Remake) to indies such as Hollow Knight, Celeste, and Hades. Shane is always willing to try new games though, so feel free to drop him an email with what you think he should check out next.