Microsoft has made cuts to studios Aquried in their 2021 acquisition of Zenimax. This includes the closures of the Japanese Studio behind Ghostwire: Tokyo and Hi-Fi Rush Tango Gameworks, and Redfall developer Arkane Austin. Additionally, mobile developer Alpha Dog Studios will also close, and Roundhouse Games will be absorbed into Elder Scrolls Online developer ZeniMax Online Studio.
In the case of Redfall, the poorly received looter shooter that was released in 2023, development on the game is being officially discontinued by Microsoft. This follows the official one-year anniversary of the game, which was marred with controversy over the hero characters that had still yet to surface despite being sold in season passes when the game was released. Microsoft stated the game will remain online and that a “make-good” offer to those who previously purchased the now canceled heroes.
In an email sent from Matt Booty, Head of Xbox Studios, these cuts were predominantly blamed on Microsofts “reprioritization of titles and resources” In the email he stated:
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.
This announcement follows the success of the Fallout series, which was released on Amazon Prime to acclaim. While not directly stated to be in pursuit of focusing Bethsda’s efforts on their popular Fallout and Elder Scrolls series, Todd Howard had previously hinted that multiple Fallout projects were in the works.
That same email went on to say:
With this consolidation of our Bethesda studio teams, so that we can invest more deeply in our portfolio of games and new IP, a small number of roles across select Bethesda publishing and corporate teams will also be eliminated.
And that:
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.
Right now, most of the teams at Bethesda are focused on current roadmaps to their existing libraries. Bethesda currently has the Starfield: Shatter Space DLC planned for this fall, and Fallout 76 and Elder Scrolls Online both have updates also scheduled to release this year. Developer MachineGames also has the upcoming Indiana Jones And The Great Circle, which is slated for later this year.
This news also comes only months after Microsoft announced plans to cut a total of 1,900 jobs across its multiple first-party studios.
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