Microsoft continues to organize the development teams under Xbox Game Studios. Most recently, studios affiliated with Bethesda were overhauled. The developers of games like Redfall and Prey have been officially shut down.

Arkane Austin, Tango Gameworks and Alpha Dog Studios shut down

Microsoft is reorganizing Bethesda Softworks, which it acquired in 2020. In the latest announcement made by Matt Booty, Head of Xbox Game Studios, it was revealed that several Bethesda development teams will be closed and teams will be merged.

Arkane Austin, known for Prey and Redfall, will close completely. Employees will be shifted to other Bethesda projects. Tango Gameworks, developer of The Evil Within, is also among the brands that will close. Alpha Dog Studios’ mobile game Mighty Doom will be deactivated on August 7 and the studio will shut down.

On the other hand, Roundhouse Studios will merge with ZeniMax Online Studios. Employees in Bethesda’s publishing and corporate divisions will also be laid off. Xbox Game Studios will take over these operations.

Matt Booty, President of Xbox Game Studios, stated that they had a hard time making these decisions, but that it was important for the game portfolio. Stating that they want to increase the investments made for Bethesda, Booty stated that they will create capacity to focus on priority games.

Microsoft has laid off about 1900 people from the Xbox division in recent months. Although Bethesda Softworks is one of the core studios of Xbox, the studio has been controversial after failed games like Redfall and Starfield.

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