Microsoft has recently made the shocking decision to shut down multiple game studios, including well-known developers such as Arkane Austin and Tango Gameworks, the creators of Redfall and Hi-Fi Rush, respectively. This news came as a surprise to many in the gaming community and was delivered to the affected staff via an email from Xbox boss Matt Booty.
In the email, Booty explained that the closures were part of a “consolidation of our Bethesda studio teams” in order to invest more deeply in the company’s portfolio of games and new intellectual properties. This decision has caused ripples across the industry, leaving many to wonder about the future of these beloved game developers.
Alongside the closure of Arkane Austin and Tango Gameworks, other studios such as Mighty Dog Studios and Roundhouse Games have also been affected. Mighty Dog Studios, known for their mobile Doom spin-off Mighty Doom, and Roundhouse Games, which had its workforce transferred to Zenimax Online Studios, are facing uncertain futures. The email to staff detailed the job losses and studio closures, urging remaining employees to treat their departing colleagues with respect and compassion.
The closure of these studios and the resulting job losses have cast a shadow over the gaming industry as a whole. It is not uncommon for companies to restructure and make tough decisions in order to focus on key priorities. However, the abrupt nature of these closures has left many in the community reeling and questioning the future of game development under Microsoft’s umbrella.
This is not the first time that Microsoft has made significant layoffs within its gaming division. In the past year or two, there has been a noticeable increase in job losses as a result of mergers and corporate restructuring. The decision to lay off 1900 people earlier this year and 10,000 workers last year has raised concerns about the company’s approach to staffing and organizational changes.
The closure of Arkane Austin and Tango Gameworks is just the latest in a series of studio closures across the industry. Just last week, Roll7, the developers behind OlliOlli World, announced their closure, along with mass layoffs at Intercept, the studio working on Kerbal Space Program 2. These closures are indicative of the challenges faced by game developers in a rapidly evolving and competitive market.
Microsoft’s decision to shut down multiple game studios has sent shockwaves through the gaming community. The impact of these closures on the developers, their families, and the industry as a whole cannot be understated. As the dust settles, it remains to be seen what the future holds for game development under Microsoft’s leadership.