In September 2020, Microsoft revealed that it had acquired ZeniMax Media for $7.5 billion dollars, a transaction that was completed in 2021. Now, three years after this historic event, Microsoft has confirmed the closure of four studios, including Tango Gameworks, which will lead to the dismissal of multiple workers.
Through an email shared by Matt Booty, head of Xbox Game Studios, it has been confirmed that Arkane Austin, Tango Gameworks, Alpha Dog Studios and Roundhouse Games will close their doors forever. In the case of Roundhouse Games, the team has been absorbed by ZeniMax Online Studios, developers of The Elder Scrolls Online.
Arkane Austin’s last work was redfallone of the studio’s most ambitious projects, which ended up becoming one of the biggest failures of 2023. Regarding this title, Microsoft has confirmed that development of updates and expansions has ended, and all players who purchased the Hero DLC of this installment can request a refund. While the online servers will remain active, at least for the time being, there are no plans to support this title.
For its part, Tango Gameworks was Microsoft’s only Japanese studio. Unlike Arkane Austin, the developers of titles like Hi-Fi Rush, Ghostwire: Tokyo and The Evil Within have enjoyed critical success, although Sales of its latest games have not been as high as Microsoft would surely have liked. This is, without a doubt, the biggest loss on this occasion.
In your email, Booty has indicated that the resources allocated to these four teams will be redirected to other types of projects. This is what he said about it:
“Today I share with you the changes we are making to our Bethesda and ZeniMax teams. These changes are based on prioritizing high-impact titles and continuing to invest in Bethesda’s portfolio of successful games and beloved worlds that you have nurtured for many decades.
Duplicating these franchises and investing to build new ones requires us to look across the business to identify the opportunities that are best positioned for success. This new prioritization of titles and resources means that some teams will realign with others and that some of our colleagues will leave us.
With this consolidation of our Bethesda teams, so we can invest deeply in our portfolio of games and new IP, a small number of roles on select Bethesda editorial and corporate teams will also be eliminated.
Those whose roles will be affected will be notified today and we ask that you treat your outgoing colleagues with respect and compassion. We will provide our full support to those affected by today’s notices and during their transitions, including severance payments informed by local laws.
These changes are not a reflection of the creativity and skills of the talented people on these teams or the risks they took to try new things. I recognize that these changes are also disruptive to the various ZeniMax and Bethesda support teams that bring our games to market. We are making these difficult decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.
Bethesda remains one of Xbox’s key pillars with a strong portfolio of incredible games and thriving communities. If we look to the future, there is an impressive list of games on the horizon. In 2024 alone we have Starfield Shattered Space, Fallout 76 Skyline Valley, Indiana Jones and The Great Circle, and Golden Road from The Elder Scrolls Online. As we align our plans and resources to better prepare ourselves for success in this complex and changing industry, our teams at Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, ZeniMax Online Studios, and Bethesda’s corporate and editorial teams will be fine. “We are positioned to build new intellectual property, explore new game concepts and expand our existing franchises.”
For its part, Studios such as id Software, Bethesda Game Studios, Arkane Lyon and MachineGames have not suffered any changes, At least for the moment. Along with this, it is unknown what will happen with properties like Prey and The Evil Within, but it is very likely that we will not see these series for a long time.
With this, The number of people who will lose their jobs is unknown., but considering that Booty has confirmed that everyone affected will receive emails today, it’s only a matter of time before we see the true impact of this decision. In related topics, a new clue emerges about the Xbox laptop. Likewise, they filter the release dates for the following Xbox games.
Author’s Note:
This is terrible news. The closure of four studios is not something to be taken lightly. Hundreds, if not thousands, of employees will lose their jobs and multiple series have been canned, probably forever. The case of Tango Gameworks is very unfortunate, and it is likely that some Activision Blizzard teams will be next. This is another example of how spending a lot of money and seeing little revenue is something Microsoft has failed at this generation.
Via: IGN
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