You won’t believe which Bethesda teams Microsoft just pulled the plug on — and what it means for games you might already own.
Four Bethesda studios are being closed, sources say
According to reporting from IGN, Microsoft is planning to shut down four studios that operate under the Bethesda umbrella: Tango Gameworks (known for The Evil Within and Hi-Fi RUSH), Arkane Austin (Prey, Redfall), Alpha Dog (Mighty Doom), and Roundhouse Games. Roundhouse — which contributed support work on projects such as Redfall — will be moved into ZeniMax Online Studios, the team behind The Elder Scrolls Online.
An internal Xbox message obtained by Bloomberg explains the reasoning
Journalist Jason Schreier has shared that he reviewed an internal email from Matt Booty, head of Xbox Game Studios, which Bloomberg published. Booty framed the moves as part of a strategy to concentrate resources on fewer, higher-impact titles and to reinforce Bethesda’s most successful franchises. He explained that the company is reviewing projects and teams to identify where investment will most likely produce hits, and that the resulting reallocation of projects and staff will lead to some teams being reassigned and others leaving the company.
Which games are directly affected and what players can expect
Booty’s message named specific projects that will be impacted. Microsoft confirmed that Mighty Doom will close on August 7, and development on Redfall has been halted — Arkane Austin will not be releasing further updates for that title. For players who purchased content tied to projects that are no longer coming, the company said it plans to present “good offers” to those customers to address the lost content.
How Xbox framed the successes and surprises from these teams
Microsoft executives have previously praised work from the studios now affected. For example, Aaron Greenberg, Xbox’s vice president of marketing, celebrated Hi-Fi RUSH as an unexpected commercial and critical success for the company, saying it exceeded key expectations and expressing pride in Tango Gameworks’ surprise release.
Broader workforce and corporate shifts at Microsoft and Bethesda
The reports do not specify the exact number of employees who will be laid off as part of this restructuring. These closings come on top of earlier reductions: roughly 1,900 roles were cut this year across ZeniMax, Xbox, and Activision Blizzard. Booty also noted that a small number of roles within certain corporate and Bethesda publishing teams will be eliminated as part of the reorganization.
Context: the acquisition and what this means going forward
These developments arrive about three years after Microsoft completed its acquisition of Bethesda’s parent company for $7.5 billion. The stated aim of the current changes is to double down on established franchises while freeing up resources to develop new major titles — a shift that prompted the internal review of teams and projects and led to the closures and transfers now being reported.
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Logan Whitmere is a gaming enthusiast who lives and breathes video games. Whether it’s reviews, gaming tips, or news about the latest releases, Logan’s passion and expertise bring the virtual world to life for every reader.