Summary
Xboxhas reportedly shut down Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Studios, with members of the latter team being folded into ZeniMax Online Studios. Layoffs have been a harsh reality of the video game industry these past couple of years, with companies of all sizes laying off significant portions of their staff or shutting down studios entirely.Xboxitself has engaged in multiple waves of layoffs this past year.
Xbox started 2024 bylaying off almost 2,000 employeesfrom the recently-acquired Activision-Blizzard and Xbox, leading to the departure of then-Blizzard president Mike Ybarra. Now Xbox has issued another set of layoffs, this time combined with significant studio closures that have seen multiple developers that fall under the Bethesda umbrella completely shut down.

As reported by IGN, Xbox has decided to shut down Arkane Austin, Alpha Dog Games, and Tango Gameworks, with Roundhouse Studios also effectively shutting down by being “absorbed” by ZeniMax Online Studios. In an email from Matt Booty obtained by IGN, it was explained that these shutdowns are about “prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games.” Arkane Austin worked on the 2017Preygame andRedfall, Tango Gameworks was known forThe Evil Withinand the critically-acclaimedHi-Fi Rush, Alpha Dog Games was working on theMighty Doommobile game, and Roundhouse Studios was primarily serving a support role at the time of its closure.
Xbox is Shutting Down 4 Bethesda Studios
Out of these four studios, the one that may come as the biggest shock is the closure of Tango Gameworks. After all,Hi-Fi Rushwas a critical successand the studio’s previous games were well-received as well. Not only that, butHi-Fi Rushwas chosen as one of the first multi-platform Xbox games. It’s possible Shinji Mikami’s departure played a role in the decision, but that’s just speculation at this time.
Arkane Austin’s closure comes in the wake ofRedfall’s disastrous launch. The co-op FPS was released to widespread negative reviews and was abandoned almost immediately after release. Prior toRedfall, Arkane Austin worked on the 2017Preygame, which many point to as one of the most underrated games of its generation. It’s unfortunate that Arkane Austin won’t have the chance to redeem itself with a new project. Arkane Lyon, meanwhile, remains operational and is currently working on theBladevideo game in collaboration with Marvel.
Bethesda
Bethesda is an American game development studio based in Maryland. They’re best known for the Elder Scrolls and Fallout series. ZeniMax Media, Bethesda’s parent company, was acquired by Microsoft in 2021, which then made it a part of Xbox Game Studios.