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Microsoft is shutting down Bethesda's Arkane Austin, Tango Gameworks, and Alpha Dog Studios


Microsoft is making additional and major cuts and layoffs in its gaming division. Today, IGN reported that in an email written by the company's Xbox Game Studios Matt Booty, the company has decided to either close or merge a number of game development studios under Bethesda Softworks.

The email stated that Arkane Austin, the maker of games such as Prey and most recently Redfall, will shut down, with some team members moved to other Bethesda projects. Tango Gameworks, the creators of The Evil Within and more recently Hi-Fi Rush that's based in Japan will shut down as well.

Alpha Dog Studios, who released the mobile game Mighty Doom in 2023, will shut down and the gamer itself will be shut down on August 7. Roundhouse Games will be merged into the ZeniMax Online Studios team. Finally, Booty stated that "a small number of roles across select Bethesda publishing and corporate teams will also be eliminated."

In his email, Booty stated:

These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things. I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.

He added that even with these closures and layoffs, the Bethesda Softworks division of Microsoft Gaming is still "one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities."

Microsoft has not yet revealed just how many Bethesda team members will be laid off with these changes. In late January, Microsoft cut 1,900 jobs across the entire gaming division. Those cuts affected 9 person of Microsoft Gaming's total workforce.

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