Outrage as Microsoft closes several Bethesda studios including Hi-Fi Rush's Tango Gameworks, Redfall's Arkane Austin
The news did not sit well with fans of popular games Hi-Fi Rush and Redfall, who flocked to social media to express their disappointment
Microsoft is shutting down multiple Bethesda studios, including Hi-Fi Rush and The Evil Within developer Tango Gameworks. In an official email obtained by IGN, sent to the affected employees Tuesday, Matt Booty, head of Xbox Game Studios, Microsoft, blamed it on “reprioritization of titles and resource.” Other studios being sacked by the tech giant include Arkane Austin, the developer of Redfall, and Mighty Doom maker Alpha Dog Games. Meanwhile, Roundhouse Games will join ZeniMax Online Studios.

Microsoft's Xbox sacks multiple studios
Matt announced the closures in the email, citing, “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,” he added.
While the company has not revealed details about the employees affected yet, considering the size of the studios, a significant layoff is inevitable. “Those whose roles will be impacted will be notified today, and we ask that you please treat your departing colleagues with respect and compassion,” Matt added.
“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,” the email further notes.
Outrage as Microsoft shuts down fan-favourite studios
The news did not sit well with fans of popular games Hi-Fi Rush and Redfall, who flocked to social media to express their disappointment. One fan wrote on X, formerly Twitter, “The teams behind Hi-Fi Rush and Ghostwire: Tokyo put so much thought and care into even the smallest details in their games. Tango Gameworks, and all affected developers, deserve better.”
Another said, “Hi-Fi Rush won a Game Award, a BAFTA and many more. One of the most critically acclaimed Xbox games in years. Awesome, unique and original game from Japan! Microsoft: Let’s close down Tango Gameworks.”