Microsoft has closed several game studios owned by Bethesda, including Tango Gameworks and Arkane Austin, to focus on their "priority games". Tango Gameworks, which is also known for The Evil Within series and Ghostwire: Tokyo, has met its end, while Arkane Austin, the creators of Redfall, have also had to turn the key.
The studio closures were confirmed by the studios involved as well as IGN, which originally reported the news. According to an internal email sent by Xbox Game Studios boss Matt Booty, the closures will lead to "significant layoffs," but Microsoft has not yet confirmed the number of employees affected.
Arkane Austin confirmed that they will be shutting down and stopping all development on Redfall, their latest game. Despite a negative reception upon release, Spencer had defended Arkane Austin and promised that Xbox would continue to improve the game.
Tango Gameworks, on the other hand, was praised for its game Hi-Fi Rush, which according to Microsoft was a "huge success". Unfortunately, the studio could not survive the recent cutbacks.
Booty's internal email mentioned that the closures would help prioritize "high-impact titles" and investment in Bethesda's "blockbuster games". Microsoft has yet to make an official announcement about the cuts, but will hold an Xbox Games Showcase event on June 9, where they will reveal their upcoming lineup of exclusive and third-party titles.
This is the latest round of cuts in a gaming industry that has already seen several similar cases this year. Microsoft's actions follow similar cuts at major studios such as Riot Games, Sony, Electronic Arts and many others.