Microsoft Xbox is closing four Bethesda studios

Microsoft Deutschland GmbH in Munich-Schwabing also markets Xbox consoles and games (Photo: GamesWirtschaft)

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Arkane Austin, Tango Gameworks and two other Bethesda studios are falling victim to Microsoft's latest cuts.

The depressing news situation with regard to studio closures and staff cuts continues: three years after the $7.5 billion takeover of Zenimax Media and the associated Bethesda studios, Microsoft manager Matt Booty announces the end of several locations.

The following studios are specifically affected:

  • Arcane AustinTexas / USA (Prey, Redfall)
  • Tango GameworksTokyo / Japan (The Evil Within, Hi-Fi Rush, Ghostwire: Tokyo)
  • Alpha DogHalifax / Canada (Mighty Doom – Setting as of August 7th)
  • Roundhouse Games / USA (integration into Zenimax Online)

Tango Gameworks has already confirmed the reports in a separate X statement. The award-winning rhythm-action game Hi-Fi Rush was released for PlayStation 5 in March. Aaron Greenberg (Vice President of Games Marketing at Microsoft) still had it in April 2023 announced: “Hi-Fi Rush was an absolute hit for us and our players in every way. We couldn’t be happier with the team at Tango Gameworks for giving us this surprise.”

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In addition, there are also cuts in the sales and marketing teams: But that's just it “a small number” affected by jobs. It is not yet known how many jobs will be lost in total. It was only at the end of January that Microsoft announced the layoffs of 1,900 employees as a result of the Activision-Blizzard takeover.

Other Bethesda studios will be spared from cuts for the time being: This is how Machine Games works Indiana Jones and the Great Circlewhile Bethesda Game Studios creates additional content for brands like Starfield, The Elder Scrolls and fallout develop.

Booty speaks of one in his email to staff “Consolidation”to create capacity and investment scope for the most promising brands and projects. Bethesda remains an essential pillar of the Xbox business.

Bethesda executives vent their frustration on social networks already free rein. This is what Dinga Bakaba, Studio Director at Arkane Lyon writes (Marvel's Blade): “This is absolutely terrible. Friendly reminder to any executives reading this: Video games are an entertainment/culture industry – and your job as a company is to take care of the artists and entertainers and help them create value for you. Don't abuse us for tactical games, don't use us as front men for miscalculations, don't let our workplaces degenerate into a Darwinian jungle. You say we'll make you proud when we play a good game. Makes us proud when times are tough. We know you are capable of this.”

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