Microsoft's Xbox shuts down four studios in devastating Bethesda cuts

Microsoft has announced four studios that are part of Bethesda will shut, with one of them merging with a different developer.

Arkane Austin, Alpha Dog Studios and Tango Gameworks will all cease operations for good with the team at Roundhouse Games joining ZeniMax Online Studios (ZOS) which develops The Elder Scrolls Online, according to IGN.

Tango Gameworks has made games such as Hi-Fi Rush, Ghostwire: Tokyo and The Evil Within series, Arkane Austin made Redfall and Alpha Dog Studios made the mobile game Mighty Doom.

Bethesda Game Studios, Arkane Lyon, Machine Games and id Software are reported to be unaffected - games across these studios include Fallout, The Elder Scrolls and Doom.

In an email verified by IGN, head of Xbox Game Studios Matt Booty sent a note out to staff.

It said: "These changes are grounded in prioritising 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 reprioritisation of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.

"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."

It comes after Microsoft announced plans to cut 1,900 staff from its video games workforce and while the Fallout series is seeing something of a revival after the success of Prime Video's TV series.

Microsoft spent $7.5 billion to buy ZeniMax Media, which owns Bethesda, in March 2021.

Arkane Lyon chief Dinga Bakaba posted a thread on X / Twitter hitting out at the cuts.

He said: "This is absolutely terrible.

"You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we seen it before.

"For now, great teams are sunsetting before our eyes again, and it's a f*****g gut stab.

"Lyon is safe, but please be tactful and discerning about all this, and respect affected folks' voice and leave it room to be heard, it's their story to tell, their feelings to express."

It isn't the first in the industry to make cuts like this - Riot Games, Electronic Arts and Japan's Sony Corp have all trimmed their workforces this year due to uncertain spending from consumers after the pandemic-era boom.

Take-Two, the American holding company that owns Rockstar Games and 2K, recently shut sown studios, an office and laid off staff themselves.

Microsoft and Bethesda have not yet made further comment.

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