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In a devastating move, Microsoft have today shut down four studios across Bethesda - Redfall developer Arkane Austin, Hi-Fi Rush studio Tango Gameworks, mobile game dev Alpha Dog and support studio Roundhouse Games who will be merged into Zenimax Online as reported by IGN.
At the moment, it looks like no other studios have been affected. All four Bethesda studios already released official statements via their X profiles, confirming the reports of closure.
Redfall, which was supposed to receive a DLC with new playable characters will cease further developments but Microsoft will keep it online for those who want to play and offer something for those who purchased the DLC that will now never be released.
Other Bethesda studios and Xbox Game Studios seem to be safe, at least for now, but how long that lasts it remains to be seen, especially for single-player focused teams like Ninja Theory, the developer of the upcoming Hellblade 2 and Compulsion Games who are currently working on South of Midnight.
In an official email sent by Xbox Game Studios head Matt Booty, it's stated that Bethesda will remain one of the key pillars of Xbox with a strong portfolio of amazing titles. Booty namedropped 2024 releases like Starfield's upcoming DLC Shattered Space, MachineGames' Indiana Jones and The Great Circle
"As we align our plans and resources to best set ourselves up for success in this complex and changing industry, our teams across Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, ZeniMax Online Studios and the Bethesda publishing and corporate teams will be well-positioned to build new IP, explore new game concepts, and expand on our existing franchises," Booty concluded.
Microsoft previously laid off over 1900 developers from Activision Blizzard and their other studios but at that time, no teams had been shut down.
The decision to close the four studios has already received major criticism from Xbox fans across social media, who are worried that Microsoft could shut down even more studios moving forward if their games are not successful.
It's certainly a terrible look for a company that spent billions and billions of dollars on acquisitions in recent years, only to lay off thousands of people and start closing studios left and right.
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