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Xbox Shutters Three Bethesda Studios, Including ‘Hi-Fi Rush’ Maker Tango Gameworks

2024-05-16 16:3725920
Xbox Shutters Three Bethesda Studios, Including ‘Hi-Fi Rush’ Maker Tango Gameworks

Microsoft‘s Xbox will shut down three studios run by its Bethesda Softworks publisher, including Arkane Austin, Alpha Dog Studios and Tango Gameworks. Additionally, it will be shifting the team at Roundhouse Games to work on “The Elder Scrolls Online” game under ZeniMax online Studios.

Xbox Game Studios chief Matt Booty announced the restructuring in a memo to staff Tuesday, writing that the closures were “grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.” “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 wrote.

Some employees of closed studios will be shifted to other remaining game studios at Microsoft.

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Microsoft acquired Bethesda owner ZeniMax Media in 2021. The company is a division of Microsoft Gaming/Xbox, but had previously retained operations as a separate business that published games developed by the ZeniMax Media studios.

These changes to the Bethesda brands come after the close of Microsoft’s purchase of Activision Blizzard and amid multiple layoffs across the gaming industry.

“Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities,” Booty wrote. “As we look to the future, there is an impressive line-up of games on the horizon. In 2024 alone we have ‘Starfield Shattered Space,’ ‘Fallout 76 Skyline Valley,’ ‘Indiana Jones and The Great Circle,’ and ‘The Elder Scrolls Online’s Golden Road.’ 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.”

See Booty’s email to staff, obtained by PvNew, in full below.

Today I’m sharing changes we are making to our Bethesda and ZeniMax teams. These changes are grounded in prioritizing 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 reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.

Here are the changes going into effect:

Those whose roles will be impacted will be notified today, and we ask that you please treat your departing colleagues with respect and compassion. We will provide our full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.

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. 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.

Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities. As we look to the future, there is an impressive line-up of games on the horizon. In 2024 alone we have Starfield Shattered Space, Fallout 76 Skyline Valley, Indiana Jones and The Great Circle, and The Elder Scrolls Online’s Golden Road. 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.

Matt

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