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In what will seem like a shock to many, Xbox has announced the closure of four Bethesda studios including multiple award-winning Hi-Fi Rush developer Tango Gameworks, Redfall developer Arkane Austin, Mighty Doom maker Alpha Dog, and The Elder Scrolls Online developer Roundhouse Games.

Xbox Shut Down Tango Gameworks, Arkane Austin, And 2 Other Bethesda Studios In A Shocking Twist

Following the development, some staff will be reassigned to other teams, according to a memo sent to staff by Matt Booty, Xbox Game Studios head. However, it was not disclosed how many staff will be laid off in the reshuffle.

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“Today I’m sharing changes we are making to our Bethesda and ZeniMax teams,” read the email sent by Booty as shared by IGN. “These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.”

“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success. 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.”

Since Microsoft has ended all the development in the affected studios, Redfall will not receive the promised updates, including new character DLC and an offline mode. However, Microsoft and Arkane have confirmed that the game will remain online.

Changes made by Xbox according to Booty’s letter to employees

Xbox Shut Down Tango Gameworks, Arkane Austin, And 2 Other Bethesda Studios In A Shocking Twist

Here are the changes going into effect:

Arkane Austin – This studio will close with some members of the team joining other studios to work on projects across Bethesda. Arkane Austin has a history of making impactful and innovative games and it is a pedigree that everyone should be proud of. Redfall’s previous update will be its last as we end all development on the game. The game and its servers will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC.

Alpha Dog Studios – This studio will also close. We appreciate the team’s creativity in bringing Doom to new players. Mighty Doom will be sunset on August 7 and we will be turning off the ability for players to make any purchases in the game.

Tango Gameworks – Tango Gameworks will also close. We are thankful for their contributions to Bethesda and players around the world. Hi-Fi Rush will continue to be available to players on the platforms it is today.

Roundhouse Games – The team at Roundhouse Games will be joining ZeniMax Online Studios (ZOS). Roundhouse has played a key role in many of our recent game launches and bringing them into ZOS to work on The Elder Scrolls Online will mean we can do even more to grow the world that millions of players call home.

With this consolidation of our Bethesda studio teams, so that we can invest more deeply in our portfolio of games and new IP, a small number of roles across select Bethesda publishing and corporate teams will also be eliminated.

Those whose roles will be impacted will be notified today, and we ask that you please treat your departing colleagues with respect and compassion. We will provide our full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.

These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things. I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.

Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities. As we look to the future, there is an impressive line-up of games on the horizon. In 2024 alone we have Starfield Shattered Space, Fallout 76 Skyline Valley, Indiana Jones and The Great Circle, and The Elder Scrolls Online’s Golden Road. 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.

– Matt

Arkane Lyon boss lashes out at Xbox executives

Xbox Shut Down Tango Gameworks, Arkane Austin, And 2 Other Bethesda Studios In A Shocking Twist

Arkane Lyon is the studio that is currently working on Marvel’s Blade. Although the studio was spared from the onslaught, the studio’s co-creative director Diga Bakaba was infuriated by the studio closures by Xbox executives and poured out his anger through a series of tweets.

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“This is absolutely terrible,” Bakaba began his thread. “Permission to be human: to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.”

“Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations/blind spots, don’t make our work environments darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we seen it before.

“For now, great teams are sunsetting before our eyes again, and it’s a f**king gut stab. Lyon is safe, but please be tactful and discerning about all this, and respect affected folks’ voice and leave it room to be heard, it’s their story to tell, their feelings to express.

“Inside baseball, but if I read “immersive sim curse” from the community, especially from a fellow dev, I swear to God… Please, let’s talk about the *real* challenges instead of rehashing irrational anxieties of the past.

“Even more inside baseball, but with a very, very wide range, as a wise and sorely missed man said: ‘Please Stop’.”

Official statement from Tango Gameworks

Official statement from Arkane

Official statement from Alpha Dog Games

What do you think about the closure of these Bethesda Studios? Do you think it was a good or bad call? Share your thoughts in the comment box below.


Emecheta Christian

Emecheta Christian is an avid gamer with over 5 years in the industry. He is also a poet. It is therefore not surprising that his post sometimes read like poetry.