In a spree of surprise closures, Microsoft has shut down several prominent development studios. These include Tango Gameworks (the developer behind Hi-Fi Rush and The Evil Within) as well as Arkane Austin. Though Redfall‘s floundering reception makes the Arkane Austin closure easier to understand, it sheds little light on the abrupt closure of Tango Gameworks. Hi-Fi Rush was a multi-category nominee at the Game Awards 2023, and just six months later, the studio is shutting down. Here’s what we know so far about the studios that have been affected, the reasons behind these aggressive cuts, and what it all means for gamers.
Studios Affected by Microsoft Cuts
It’s been reported that Tango Gameworks and Arkane Austin aren’t the only developers to meet their end on Microsoft’s chopping block. Microsoft is also closing Alpha Dog Games (Mighty Doom), and ZeniMax Online Studios (The Elder Scrolls Online) will be absorbing Roundhouse Studios. Public interest in the Fallout franchise is high thanks to the show’s success, and Microsoft is reportedly leaving Bethesda Game Studios intact, along with id Software, Machine Games, and Arkane Lyon. Although Bethesda survived these most recent cuts, it’s unclear what this means for the future of the dev’s flagship series.
It’s unclear how many layoffs will accompany these closures and what other teams might be scheduled for future cuts. Stories of sweeping layoffs within the industry were frequent in 2023. Microsoft is unlikely to be the only company to continue that trend in 2024. Matt Booty, head of Xbox Game Studios at Microsoft, reportedly cited “reprioritization of titles and resources” as the reason behind these cuts. It’s not surprising that Microsoft would want to double-down on already profitable IPs such as Fallout and The Elder Scrolls. That said, the critical and commercial success of titles like Hi-Fi Rush makes some of these closures much harder to understand.
