It felt like a win for Xbox when Microsoft was on its studio acquisition spree, as it made some massive purchases. From Bethesda to Activision, the business decisions were huge, which also hinted at better opportunities for the smaller studios that fall under these bigger names. These developers have provided players with amazing experiences like Hi-Fi Rush, leading them to believe that their success would’ve been enough to keep the studios going.

Unfortunately, multiple studios, including Tango Gameworks and Arkane Austin, have been shut down.

Microsoft Closes Tango Gameworks, Arkane Austin, and More

Despite receiving acclaim and turning out to be an impressive success, the studio behind Hi-Fi Rush has been shut down by Microsoft.
Despite receiving acclaim, Hi-Fi Rush’s studio has been closed by Microsoft.

Tango Gameworks and Arkane Austin aren’t the only studios that’ve been shut down, as Alpha Dog Games has also been closed, while Roundhouse Games has been merged with ZeniMax Online Studios. Ranging from Hi-Fi Rush and Redfall to Mighty Doom, the developers behind these games have faced severe job cuts.

The staff found its fate out through an email sent by Matt Booty, Xbox Game Studios’ president, who explained the reason behind the layoffs, stating there’ll be changes made to the Bethesda and ZeniMax teams, claiming that the move was made to prioritize “high-impact titles,” which doesn’t add up since the recent impact made by Tango’s rhythm game was big and put Xbox on the radar again.

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The company’s looking to make more investments in creating “blockbuster games,” which is why Bethesda Game Studios, the developer behind Fallout, will remain unaffected. Booty continued, “This reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us,” as he proceeded to list down the effects that the studios will be hit with.

Arkane Lyon Survives, but Arkane Austin Doesn’t

Arkane Austin being shut down will naturally make things more concerning for Arkane Lyon, as the layoffs could hit it in the future too.
Arkane Austin being shut down will make things more concerning for Arkane Lyon, as layoffs could hit it too.

Witnessing the demise of Arkane Austin wouldn’t have been easy for Arkane Lyon, which is working on Marvel’s Blade, but this will likely worry the developer about getting closed after completing the game.

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Dinga Bakaba, Lyon’s director, spoke out against the layoffs on X, writing that they are “absolutely terrible,” as he proceeded to address the responsible executives.

Giving them a “friendly reminder that video games are an entertainment/cultural industry,” Bakaba stated that the company should take responsibility “as a corporation” and treat their “artists” with more “care.”

For those looking forward to more Redfall content, it won’t see the light of day, and the studio’s giving back credit to players who purchased its Hero DLC.

Fresh titles like Tango’s were bringing Xbox much-needed recognition, but with decisions like these, the company is making it hard for its gaming division to succeed. While PlayStation and Sony backtrack on decisions because of community feedback, Xbox and Microsoft keep making things worse for their players and studios.

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