Microsoft has decided to shut down several Xbox game development studios, including Arkane Austin, the team behind the game "Redfall," just a year after its release. The announcement, which IGN first reported and later confirmed by Arkane Studios on the social media platform X, marks a massive shift for the tech giant, which had previously acquired an extensive portfolio of gaming studios. "Today it was announced that Arkane Austin will close and development will not continue on 'Redfall,'" said Arkane Studios in a statement sourced by KVUE.
The closures are not limited to Arkane Austin, as Microsoft has also elected to indefinitely shut down Tango Gameworks, developers of the acclaimed "Hi-Fi Rush" and "Ghostwire: Tokyo." Even despite "Hi-Fi Rush" being heralded as one of Xbox's best hits of the generation with plenty of plaudits and high reviews, Microsoft has chosen to take this drastic step. According to Forbes, Shinji Mikami, the CEO and founder of Tango Gameworks, left the company in February 2023, which might have played into the decision to close down the studio.
Alongside these two high-profile studios, Alpha Dog Games and Roundhouse Games are also being impacted. Alpha Dog Games, known for the Wrathborne ARPG, is facing closure, while Roundhouse Games is reportedly being folded into Zenimax Online instead of being completely shut down. Arkane's statement on X also mentioned a gesture of goodwill towards the players of 'Redfall,’ with a refund being issued for content sold at launch but that is now never going to be released.
Back in June 2023, Xbox’s Matt Booty had stated there were "no plans" to close Arkane Austin, yet this recent turn of events indicates an abrupt pivot. "Redfall" was marked by a problematic debut, struggling with poor reviews and lackluster player engagement. The game was patched to make certain improvements but failed to deliver the promised additional content. Arkane Austin's shutdown comes as part of an ongoing trend of layoffs within the gaming industry this year. Confirmation of the exact number of layoffs at Arkane Austin has not been disclosed, yet some employees will be moved to other studios, KVUE explained through an internal email it obtained. Dinga Bakaba, Arkane Lyon Chief, echoed a sentiment of dismay on social media saying, "Great teams are sunsetting before our eyes again."
