Redfall Developer Arkane Austin Shut Down After Last Year’s Failure

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Hi-Fi Rush Dev Also Closed Despite Recent Success!

Story Highlight
  • Matt Booty has sent emails announcing the closure of various Bethesda Softworks studios.
  • The most important closures include Arkane Austin, Tango Gameworks, Alpha Dog Studios, and more.
  • Xbox claims this move will help it prioritize beloved IPs in the future.

Xbox seems to be the master of making unexpected moves lately. If the latest multiplatform push wasn’t enough, the gaming giant has closed multiple big Bethesda Softworks studios out of the blue.

Among these, Arkane Austin and Tango Gameworks are two major blows to Xbox Game Studios.

Why it matters: The studio closures have led to industry-wide criticism of Xbox, with many stating that the brand continues to damage its reputation.

Redfall
Redfall Became One of Last Year’s Biggest Failures

As Per Jason Schreier, Xbox’s Matt Botty informed staff about studio closures to prioritize beloved titles and ensure future investments in existing IPs.

Arkane Austin is the biggest closure after the failure of Redfall. While this may seem warranted, Xbox was adamant about supporting the game until recently, with sources even pointing to a comeback.

Next, it seems the Hi-Fi Rush developer has not been safe either. Despite delivering Microsoft’s most noteworthy hit last year, Tango Gameworks is being forced to cease operations.

The closures also extend to Alpha Dog Studios, the team that developed Mighty Doom. Moreover, Roundhouse Games is being merged into Zenimax Online Studios once these changes occur.

This shutdown came three months after Xbox laid off 1900 employees. The number of employees impacted by the shutdown remains unknown, but both of Xbox’s biggest acquisitions have now suffered heavy losses in 2024.

This also means that the development of Redfall has been stopped. Arkane Lyon’s boss has harshly criticized Microsoft after the announcement, criticizing the company for its lack of support.

Hi-Fi Rush
Hi-Fi Rush Was A Universal Hit In 2023

For now, Arkane Lyon, who is currently working on Marvel’s Blade, lives on. However, this announcement will inevitably create a rough working environment at this studio.

We find this announcement quite upsetting. Since Xbox continues to buy up more and more studios, it seems the same fate awaits most of its team in the future.

If a developer like Tango Gameworks remains unsafe after launching Hi-Fi Rush, there is no guarantee for other studios. We can only hope the best for everyone at Xbox Game Studios and wish them the best of luck.

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