Microsoft has confirmed the closure of four studios within the Bethesda family, following a previous round of layoffs across the gaming industry. The closures include Tango Gameworks, the team behind “Hi-Fi Rush”, and Arkane Austin, creators of “Redfall”.

According to a recent report by IGN, the closures are part of a broader initiative by Microsoft to streamline its operations within the gaming sector. Alpha Dog Games and Roundhouse Studios are also among those affected, with Roundhouse set to merge with ZeniMax Online Studios. The move will not impact other Bethesda units like Bethesda Game Studios, Machine Games, and id Software.
The decision shocked the gaming community due to the recent success of “Hi-Fi Rush”, which had been well-received by critics and players. The shutdown of Arkane Austin also casts a shadow over the future of “Redfall”, as it is now expected to cease receiving updates, though its servers will continue to operate.
These closures continue a worrying trend in the gaming industry, marked by significant layoffs at major firms such as Sony and Riot earlier in the year. This wave of layoffs has raised concerns over job security in the industry, with many professionals facing an uncertain future.

As the dust settles, the long-term impact of these closures on the gaming landscape remains to be seen, with the affected communities and developers looking for new opportunities in an increasingly challenging market environment. Microsoft and Bethesda have yet to provide detailed comments on the reasons behind these decisions or their plans for the future of the impacted franchises and staff members.
