Microsoft Shuts Down Bethesda Studios: Redfall, Hi-Fi Rush End

Microsoft Shuts Down Bethesda Studios: Redfall, Hi-Fi Rush End

Microsoft has announced the closure of several game studios, including Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. This decision, attributed to a “reprioritization of titles and resources,” was announced in an email to staff by Xbox Game Studios head Matt Booty. Alpha Dog Games, the developer of Mighty Doom, is also affected.

Impact on Games and Studios

Redfall development has ceased, with the last update already released. Servers will remain online, and players who purchased the Hero DLC will receive compensation. Hi-Fi Rush, despite recent critical acclaim and success, will remain available on existing platforms. Mighty Doom will sunset on August 7th. Roundhouse Studios is being integrated into ZeniMax Online Studios to work on The Elder Scrolls Online.

Bethesda’s Future

While acknowledging the disruptive nature of these changes, Booty emphasized that Bethesda remains a key pillar of Xbox. He highlighted upcoming titles including Starfield Shattered Space, Fallout 76 Skyline Valley, Indiana Jones and The Great Circle, and The Elder Scrolls Online’s Golden Road.

Layoffs and Industry Trends

This news follows Microsoft’s earlier layoffs of 1,900 employees across Xbox Game Studios and Activision Blizzard. These closures contribute to a pattern of layoffs and studio closures across the video game industry over the last 18 months.