Microsoft to Close Arkane Austin, Tango Gameworks, and More in Big Shift

Microsoft has announced the closure of several game development studios, including Tango Gameworks, creators of the acclaimed game Hi-Fi Rush, and Arkane Austin, known for Redfall. The sudden decision, communicated by Matt Booty, head of Xbox Game Studios, is part of a "reprioritization of titles and resources" within the company. The closures come in the wake of layoffs following Microsoft's acquisition of Activision Blizzard. The email highlighted that despite the creative and skillful staff at the affected studios, the shift was necessary to focus on other projects and priority games. While some Arkane Austin employees may find opportunities within other teams at Microsoft, most staff from the shuttered studios will be left without employment. Booty reassured that Bethesda remains a crucial part of Xbox's future with upcoming titles such as Starfield Shattered Space, Fallout 76 Skyline Valley, and Indiana Jones and The Great Circle. This news marks another major layoff event in the video game industry and has stirred a significant reaction due to Tango Gameworks' recent successes.

Microsoft is shutting down these studios as part of a strategic realignment, focusing on prioritizing resources towards upcoming projects and key games. Despite the talent within these studios and their recent achievements, Microsoft aims to consolidate its effort on what it identifies as more critical ventures within its portfolio.

As an additional background, Tango Gameworks is a game development studio located in Tokyo, Japan, and they are well-known for developing The Evil Within and its sequel. Their most recent success, Hi-Fi Rush, was praised for its innovative rhythm-action gameplay and vibrant art style. Arkane Studios, headquartered in Lyon, France with a sister studio in Austin, Texas, is known for creating immersive simulation games with rich narrative elements, such as Dishonored and Prey. The closing of Arkane Austin and Tango Gameworks, along with others, has sparked discussions within the gaming community about the future of game development and job security within the industry.