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Xbox shuts down Tango Gameworks, Arkane Austin, two more studios

Microsoft is shutting down several studios, including Arkane Austin, Tango Gameworks and Alpha Dog Games. It’s also folding Roundhouse Studios into ZeniMax Studios Online. Tango and Arkane confirmed the closures on social media, and the latter added that it’s ceasing development on live-service game Redfall. The company is also sunsetting Alpha Dog’s title Mighty Doom. It’s not yet clear how many employees will be affected by the studio closures.

According to Bloomberg, Xbox head Matt Booty said in an email, “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.” Other developers, such as Bethesda and Arkane Lyon, remain open and working on in-development titles. Booty added that the company would inform the affected employees today, so layoffs appear to be inevitable.

Tango Gameworks most recently launched Hi-Fi Rush, along with The Evil Within 2 and Ghostwire Tokyo. Arkane Austin last year launched the critically panned Redfall, though it’s also the studio behind Prey and Dishonored 2. Arkane said on X that it was working on refunds for players who purchased premium editions of Redfall, as the game won’t receive any more updates and players won’t get their promised premium content.

Dinga Bakaba, studio director at Arkane Lyon, said on X, “This is absolutely terrible. Permission to be human: to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you… Lyon is safe, but please be tactful and discerning about all this, and respect affected folks’ voice and leave it room to be heard, it’s their story to tell, their feelings to express.”

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