Xbox is shutting down Arkane Austin, Tango Gameworks and two other Bethesda studios

Xbox is closing down four Bethesda studios, including Redfall developer Arkane Austin and Hi-Fi Rush studio Tango Gameworks.

Arkane, Tango, Alpha Dog and Roundhouse Games will all be closing down, with some staff joining other teams, according to a memo sent to staff.

Staff were told the news over email by Xbox Game Studios head Matt Booty. A copy of the message was first reported by IGN.

Booty told staff that the decision was based on a “reprioritisation of titles and resources”, and that some employees will be realigned to other teams, and others laid off.

“Today I’m sharing changes we are making to our Bethesda and ZeniMax teams,” Booty’s email reads. “These changes are grounded in prioritising high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.

“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success. This reprioritisation of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.”

Booty goes on to detail the changes affecting the four studios. Arkane Austin – the studio behind Redfall – will close, with “some members of the team joining other studios to work on projects across Bethesda”.

“Redfall’s previous update will be its last as we end all development on the game,” Booty said. “The game and its servers will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC.”

Japan-based Tango Gameworks – previously responsible for The Evil Within, Ghostwire: Tokyo and Hi-Fi Rush – will also close, with Booty adding that,  “Hi-Fi Rush will continue to be available to players on the platforms it is today”.

Alpha Dog, the studio behind Mighty Doom, will be closing too, with Mighty Doom closing down on August 7. “We will be turning off the ability for players to make any purchases in the game”, Booty said.

Finally, Roundhouse Games – which itself was formed following the closure of Human Head Studios – will be closing down and the team will be joining ZeniMax Online Studios.

“Roundhouse has played a key role in many of our recent game launches and bringing them into ZOS to work on The Elder Scrolls Online will mean we can do even more to grow the world that millions of players call home,” Booty wrote.

As well as the presumed layoffs at Arkane Austin, Tango Gameworks and Alpha Dog, Booty also told staff that “a small number of roles across select Bethesda publishing and corporate teams will also be eliminated”.

“These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things,” he added.

“I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”

Booty goes on to tell staff that Bethesda “remains one of the key pillars of Xbox” despite the team closures.

“As we align our plans and resources to best set ourselves up for success in this complex and changing industry, our teams across Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, ZeniMax Online Studios and the Bethesda publishing and corporate teams will be well-positioned to build new IP, explore new game concepts, and expand on our existing franchises,” he wrote.

Microsoft confirmed in January that 1,900 staff would be laid off across Activision Blizzard, Bethesda and Xbox.

According to head of gaming Phil Spencer at the time, the decision had been made after Microsoft and Activision Blizzard’s leadership teams “set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth”.

It’s not yet clear if these newly announced Bethesda studio closures are considered part of these 1,900 layoffs, or an entirely new set of cuts.