Microsoft Corp.’s Xbox gaming division will shut down four subsidiaries, including the game studio Arkane Austin, according to an email reviewed by Bloomberg.
Arkane Austin’s most recent game, Redfall, was one of Microsoft’s biggest flops last year. The company said it will end development on the game and “provide make-good offers” to players who prepurchased content that will never be released.
Xbox will also shutter subsidiaries Alpha Dog Studios, Roundhouse Games and Tango Gameworks, the Japanese studio behind critically acclaimed hits such as Hi-Fi Rush. Roundhouse Games will be absorbed by ZeniMax Online Studios, the maker of The Elder Scrolls Online.
“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,” wrote Matt Booty, head of Xbox Game Studios, in an email to employees Tuesday.
Booty did not say how many people will lose their jobs as a result of the shutdowns. He also noted that, “Bethesda remains one of the key pillars of Xbox” with upcoming titles, such as a Starfield expansion and a new game based on Indiana Jones, planned for later this year.
After the Redfall failure I can sort of understand the Arkane Austin decision. But Tango Gameworks is a curious one. Hi-Fi Rush was a solid, well received title from a relatively small studio. Moreso, it’s one of the few (the only?) Japanese studios in the Xbox Studios stable. Why kill that one when Xbox are wanting to expand their footprint in the important Japanese and Asian markets?