Microsoft has closed a number of Bethesda studios, including Redfall developer Arkane Austin and Hi-Fi Rush developers, as well as The Evil Within developers Tango Gameworks, according to IGN.
Alpha Dog Studios, developer of the mobile game Mighty Doom, will also cease operations. Roundhouse Games will absorb The Elder Scrolls Online developer ZeniMax Online Studios. The exact number of employees losing their jobs is not specified, but significant layoffs are inevitable.
Microsoft has announced that Redfall will remain available to play online, but promised updates will not be received. Those who purchased the Hero DLC are promised compensation.
Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
In an email to employees sent by Matt Booty, the head of Xbox Game Studios, Microsoft blamed the layoffs on "changing the priority of titles and resources."
The announcement of layoffs at Bethesda comes three months after Microsoft announced plans to cut 1,900 video game employees, and against the backdrop of the Fallout series from Bethesda booming after the release of the TV adaptation on Prime Video.
Tango Gameworks is shutting down just over a year after the release of Hi-Fi Rush, which many considered one of the best Xbox games in recent years.
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024
In a series of tweets, Arkane Lyon's head Dinga Bakaba criticized the layoffs, calling them "terrible."
“For any executive reading this, a friendly reminder that video games are an entertainment/cultural industry, and your job as a corporation is to take care of your employees and help them create value for you,” Bakaba continued.
The layoffs are affecting the entire video game industry, with many well-known studios laying off staff or closing. A week earlier, GTA VI publisher Take-Two closed two game studios — Roll7 and Intercept Games (parts of Private Division).
According to some estimates, in 2024, the video game industry shed 9,400 jobs, and in 2023 — 10,500 employees. Sony, Microsoft, and Riot Games together laid off a total of 3,300 employees this year (excluding today's closures), and the consequences of the financial implosion of Embracer Group continue to spread (numerous closed studios and over 1,400 laid-off employees).
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