Microsoft’s Xbox shuts multiple studios, consolidates teams in cost-cutting move.
Microsoft’s Xbox organization confirmed it is closing several Bethesda-owned studios and reorganizing teams as it refocuses resources across its game portfolio.
Key points
- Studios affected include Arkane Austin (Redfall), Tango Gameworks (Hi-Fi Rush), and Alpha Dog Games (Mighty Doom).
- Roundhouse Studios is being folded into ZeniMax Online Studios to support The Elder Scrolls Online.
- Xbox says the move reflects a reprioritization of titles and resources, with some staff reassigned and others laid off.
- Microsoft has not disclosed how many roles are impacted.
What happened
On May 7, Microsoft’s Xbox division informed employees that it will shut down multiple game development teams within ZeniMax and Bethesda, while consolidating other groups. The announcement was attributed to Xbox Game Studios leadership in an internal memo and was widely reported by major outlets.
Which studios are impacted
| Studio | Status | Notable work |
| Arkane Austin | Closing. Some team members are expected to move to other Bethesda projects. | Redfall (online servers will remain available). |
| Tango Gameworks | Closing. | Hi-Fi Rush (continues to be available on current platforms). |
| Alpha Dog Games | Closing. | Mighty Doom (mobile title). |
| Roundhouse Studios | Consolidating into ZeniMax Online Studios. | Support work and collaboration on The Elder Scrolls Online. |
Why Microsoft is making changes
Xbox leadership described the restructuring as a way to concentrate investment on priority games, including new intellectual property and established franchises. The decision arrives amid a broader industry slowdown and continuing cost controls across large publishers.
Reuters also pointed to market research suggesting console and PC gaming growth may remain below pre-pandemic levels, with players logging fewer hours as release schedules soften.
What happens next
- Teams and projects are expected to be reassigned across Bethesda where possible, particularly from Arkane Austin.
- Existing online services such as Redfall’s servers are expected to remain available for current players.
- ZeniMax Online Studios will take on additional staff as Roundhouse is integrated.
Context and timeline
All affected teams sit under ZeniMax Media, which Microsoft acquired in 2021 for about $7.5 billion. The closures also follow other reductions across Microsoft’s gaming business, including layoffs announced earlier in 2024 after the Activision Blizzard acquisition.
Sources
- Reuters, “Microsoft’s Xbox shuts multiple studios, consolidates teams in cost-cutting move” (May 7, 2024).
- The Verge, “Microsoft shuts down Bethesda studios behind Redfall and Hi-Fi Rush” (May 7, 2024).
- Game Developer, “Microsoft closes Arkane Austin, Tango Gameworks and Alpha Dog Games” (May 7, 2024).
