Closure Shock: Microsoft Axes Hi-Fi Rush Developer and More
In a move that has sent shockwaves through the gaming industry, Microsoft has announced the closure of four game studios, including Tango Gameworks, the developers behind the Bafta award-winning title Hi-Fi Rush. The decision also affects Texas-based Arkane Austin, Canadian developer Alpha Dog Studios, and Wisconsin-based Roundhouse Games, with the latter being absorbed into Elder Scrolls Online developer ZeniMax Online Studios.
The closures, all under the umbrella of subsidiary Bethesda, which Microsoft acquired for $7.5 billion in 2020, have raised questions about the future of these studios and the fate of their upcoming projects. Matt Booty, head of Xbox Games Studios, announced the news in an email to staff, revealing that development on Arkane Austin's game Redfall would be halted, with some team members moving to other studios. Microsoft plans to offer compensation to players who had pre-ordered downloadable content for Redfall.
The closure of Tango Gameworks marks the end of an era for the studio, known for creating popular titles such as The Evil Within and Ghostwire: Tokyo. Its founder, Shinji Mikami, had already departed to start his own studio, signalling a turbulent period for the company.
The news has been met with criticism from both gamers and industry insiders. Dinga Bakaba, studio head of Arkane Austin's sister studio Arkane Lyon, described the cuts as "absolutely terrible," emphasising the need for corporations to prioritise the well-being of their creative teams.
This move comes amidst a wave of job cuts in the gaming industry, with Bethesda itself facing previous cuts in January 2024. Microsoft, which had around 22,000 employees in its gaming division at the time, stated that the decision was aimed at prioritising high-impact titles and investing further in Bethesda's existing portfolio of games.
The closures serve as a reminder of the volatile nature of the gaming industry, where even successful studios are not immune to sudden changes. As the dust settles, the future remains uncertain for the talented developers affected by these closures, and the gaming community watches closely to see how these changes will impact the industry as a whole.