Microsoft’s Xbox division is closing down 4 studios under Bethesda and ZeniMax, including Hi-Fi RUSH studio Tango Gameworks and Redfall maker Arkane Austin, as well as Roundhouse Studios and Alpha Dog Games.

In a companywide email sent out by Matt Booty, Microsoft Gaming president of game content and studios, confirmed that the 4 studios will face closure, citing “reprioritisation of titles and resources” as reasons, as reported by IGN.

The email reads:

Today I’m sharing changes we are making to our Bethesda and ZeniMax teams. These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.

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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 reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.

Booty goes on to share details on the changes to the 4 studios, starting with Arkane Austin, the developer behind the vampire-themed multiplayer first-person shooter Redfall. The studio will be closing its doors, and some members of Arkane Austin will be “joining other studios to work on projects across Bethesda”.

Continued development of Redfall will also be ceased, with the previous update being its last, but the “game and its servers will remain online for players.”

Arkane Austin also put out an announcement that players who have purchased the Hero Pass as part of the premium Bite Back Edition will be eligible to receive credits for Redfall, with further details coming to the Bethesda Support webpage.

Meanwhile, Tango Gameworks, the Japan-based studio founded by Resident Evil creator Shinji Mikami and is responsible for the surprise hit Hi-Fi RUSH as well as The Evil Within survival horror series and Ghostwire: Tokyo – will also be closing.

“We are thankful for their contributions to Bethesda and players around the world,” added Booty.

Previously, a year ago, founder Shinji Mikami left the studio, and has now formed a new company named KAMUY.

Both Alpha Dog Games and Roundhouse Studios will also close their doors. With Alpha Dog Games closing, Mighty DOOM will also be sunset on 7 August 2024, and the ability to make any purchases in the game will be turned off.

As for the team at Roundhouse Studios, they will be joining ZeniMax Online Studios to work on The Elder Scrolls Online.

“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,” the email continues.

“Those whose roles will be impacted will be notified today, and we ask that you please treat your departing colleagues with respect and compassion. We will provide our full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.”

“These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things. I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”

“Bethesda remains one of the key pillars of Xbox with a strong portfolio of amazing games and thriving communities. As we look to the future, there is an impressive line-up of games on the horizon. In 2024 alone we have Starfield ‘Shattered Space,’ Fallout 76 ‘Skyline Valley,’ Indiana Jones and The Great Circle, and The Elder Scrolls Online‘s ‘Golden Road'”

“As we align our plans and resources to best set ourselves up for success in this complex and changing industry, our teams across Arkane Lyon, Bethesda Game Studios, id Software, MachineGames, ZeniMax Online Studios, and the Bethesda publishing and corporate teams will be well-positioned to build new IP, explore new game concepts, and expand on our existing franchises,” Booty wrote.

In January of this year, Microsoft confirmed that 1,900 staff would be laid off across its gaming divisions, including Activision Blizzard and Bethesda.

The layoffs come a few months following the completion of its $69 billion acquisition of Activision Blizzard, and Microsoft Gaming CEO Phil Spencer noted that the layoff decision was to “set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth”.