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

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.

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.