Big changes have come to some Bethesda/ZeniMax studios under Microsoft's umbrella. In 2020, when MS made the blockbuster purchase, along with it came the production divisions within their label. Xbox has now decided to shutter the doors on four of these teams. 

According to the reports, Tango Gameworks (Ghostwire: Tokyo, Hi-Fi Rush), Arkane Austin (Redfall), Alpha Dog Games (Mighty DOOM), and Roundhouse Studios, who assisted with development on Redfall, will be closed down. Staffers who worked within Arkane and Roundhouse will be absorbed within Bethesda.

(Image: Redfall, Arkane Austin)

Arkane's big release of 2023, Redfall, ended up being a commercial failure and a critical flop, citing its rushed development, poor A.I., and rudimentary gameplay. It will receive one final update, but the planned DLC has been scrapped, according to an email sent by Matt Booty, Head of Xbox Game Studios, courtesy of IGN:

Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8

— Arkane Studios (@ArkaneStudios) May 7, 2024

Tango Gameworks comes as a greater surprise. Originally headed by survival horror veteran Shinji Mikami (the creator and director of the early Resident Evil games), the studio produced The Evil Within series, Ghostwire: Tokyo, and 2023's critically acclaimed rhythm action game Hi-Fi Rush, the final game Mikami worked on before departing. That should've been a harbinger. Based on their social media post, it appears the talent from this team will not be absorbed into any other Xbox or Bethesda division.

Today it was announced that Tango Gameworks will close. Thank you to everyone that explored the worlds we created. Hi-Fi RUSH along with Tango's previous titles will remain available everywhere they are today.

pic.twitter.com/KhhqgR902g

— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024

These studios and closures add to Microsoft's continued massive layoffs, including 1,900 employees back in January 2024. Welcome to the modern business of gaming, everyone.

SOURCES: IGN