Layoffs and studio closures are happening again. After previously laying off 1,900 employees at Activision Blizzard, Microsoft is now closing 4 development studios from Bethesda.
This closure came quite suddenly, where teams working under these studios only received messages via email sent by Matt Booty, who is the head of Xbox Game Studios.
As reported by IGN, Based on the email sent by Matt Booty to the staff, Microsoft stated that this happened due to a realignment of priorities for titles and resources.
Microsoft closed Tango Gameworks and other studios due to a realignment of priorities for titles and resources.
Microsoft has now closed 4 studios: Tango Gameworks, the developer of The Evil Within; Arkane Austin, which is developing Redfall; Alpha Dog Games; and Roundhouse Studios.
The closure of Tango Gameworks itself is quite surprising as their games have received positive responses, and Hi-Fi Rush has also been well-liked by gamers worldwide.
The number of employees affected by the closure of these 4 Bethesda studios is unknown. However, it can be confirmed that the layoffs that occurred are significant, although not as extensive as the previous wave.
Several Bethesda studios that are not mentioned will not be affected at all. This means that Arkane Lyon, working on Marvel Blade; Bethesda Game Studios, the core studio; iD Software; and Machine Games, currently developing Indiana Jones, will not be affected.
Here are the details regarding the continuation of the closed studios:
Based on the same email, Matt Booty also explained the future of the studios and teams affected. Here are the details outlined by Matt Booty in the email sent to the staff:
Arkane Austin will be closed with some team members joining other studios working on various projects at Bethesda. Previous updates on Redfall will be the final updates. The game will remain online for players who enjoy it, and Microsoft will offer a good deal for players who have purchased the Hero DLC.
Alpha Dog Studios will be closed. Matt Booty appreciates the team's creativity in bringing Doom to new players on the mobile platform. The game Mighty Doom will cease operations on August 7, and Microsoft will disable in-game purchase features.
Tango Gameworks will also be closed by Microsoft. Matt thanks Bethesda and its players worldwide for their contributions. Hi-Fi Rush will still be available to players on the current platforms.
Roundhouse Games teams will join ZeniMax Online Studios (ZoS). Roundhouse has played a crucial role in various recent game launches, and bringing them to ZOS to work on The Elder Scrolls Online is the right choice.
As of this report, Microsoft has yet to issue an official statement regarding the closure of these studios. Games under these closed studios are unlikely to be continued.