Microsoft took the axe to multiple video game development companies in its portfolio including Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks.
A screenshot from Redfall (2023), Arkane Austin
Arkane Studios posted to X to confirm the closure of Arkane Austin and informed Redfall players, “Today it was announced that Arkane Austin will close and development will not continue on Redfall.”
“To everyone that has supported the work from our Austin studio over the years, thank you. Thank you for spending time in our worlds and making them your own,” the statement continued. “Arkane Lyon will continue their focus on immersive experiences where they are hard at work on their upcoming project.”
“Redfall players who purchased the Hero Pass as part of the premium Bite Back Edition or the premium Bite Back update will be eligible to receive the value of the upgrade. While there will be no further updates, Redfall’s servers will remain online for players to enjoy.”
Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
Tango Gameworks also confirmed it was shutting down writing on X, “Today it was announced that Tango Gameworks will close. Thank you to everyone that explored the worlds we created. Hi-Fi RUSH along with Tango’s previous titles will remain available and playable everywhere they are today.”
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024
IGN’s Wesley Yin-Poole also reports that Microsoft shut down mobile game developer Alpha Dog Games and will merge Roundhouse Studios into The Elder Scrolls Online developer ZeniMax Online Studios. Alpha Dog Games’ Mighty Doom game will shut down on August 7th and current players will no longer be able to make purchases for the game.
In an email obtained by Yin-Poole, Xbox Game Studios’ Matt Booty explained the closures and layoffs, “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.”
He added, “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.”
A screenshot from Indiana Jones and the Great Circle (2024), Machine Games
After going over the closures, Booty stated, “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.”
He went on to note, “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.”
A screenshot from The Elder Scrolls Online (2014), ZeniMax Online Studios
Booty concluded his email touting upcoming games and DLC for a number of its major franchises, “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,” he finished.
A screenshot from Fallout 76 (2020), Bethesda Game Studios
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Arkane Austin’s Redfall was a commercial failure. According to Steam DB the game’s peak concurrent players hit 6,124 when it released in May 2023. However, the peak concurrent players quickly declined to less than 1,000 in less than a week. A year after the game was released and the 24-hour concurrent peak did not even pass 100. It hit 75.
According to sales estimates, the developer only moved between 45,000 and 366,000 units on Steam.
Redfall player and sales data from Steam DB
Hi-Fi Rush had a similar all-time peak concurrent of 6,132 players when it released January 2023. However, it’s player base did not dry up as quickly as Redfall. The game still had 341 peak concurrent players in the last 24 hours.
Sales data also shows it sold between 446,000 units and 721,800 units.
Hi-Fi Rush player and sales data from Steam DB
Xbox Games Marketing Vice President at Microsoft Aaron Greenberg also asserted that the game was “a break out hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.”
Aaron Greenberg on X
What do you make of Microsoft shutting down these three studios and merging Roundhouse Studios into ZeniMax Online Studios?
I won’t be surprised if we see a physical version of Hi-Fi Rush soon, maybe through Limited Run or IAm8Bit. But yeah, this is not surprising. Modern Microsoft was given much and still managed to destroy most of it, so this isn’t a surprise.