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Three soldiers facing a monster in Redfall
Image via Bethesda Softworks

Xbox shuts down Redfall, Hi-Fi Rush studios amid Bethesda cuts

Many talented studios have been affected.

Amid Bethesda cuts, Xbox has shut down several studios, including those that brought us games like Hi-Fi Rush and Redfall. A small number of roles have been eliminated while the rest of the development teams are moving to other studios owned by Microsoft.

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Xbox is shutting down Arkane Austin, Tango Gameworks, Alpha Dog Studios, and Roundhouse Games, according to Jason Schreier on May 7. Roundhouse Games is reportedly merging with ZeniMax Online Studios.

Protagonist Chain zipping across the futuristic city setting of Hi-Fi Rush
Hi-Fi Rush studio, Tango Gameworks, has been affected. Image via Bethesda Softworks

In the email sent to staff, shared by IGN, head of Xbox Game Studios Matt Booty revealed the details behind these cuts. “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,” the email reads.

Arkane Austin, the studio behind Redfall, is closing, with some members joining other studios across Bethesda. Redfall‘s servers remain online and will provide “make-good offers to players who purchased the Hero DLC.” Alpha Dog Studios and Tango Gameworks are also closing. The Mighty Doom top-down shooter sunsets on Aug. 7, while the Hi-Fi Rush remains available on all its current platforms. Roundhouse Games is merging with 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,” Booty wrote, highlighting the impacted employees are receiving full support, including severance benefits informed by local laws.

Studio director at Arkane Lyon, Dinga Bakaba, expressed his frustration regarding the closures. “Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations/blind spots, don’t make our work environments darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough,” Bakaba wrote.

This comes after Microsoft laid off nearly 2,000 employees in January 2024, affecting Activision Blizzard, Xbox, and ZeniMax Media.


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Edward Strazd
Freelance News and SEO Writer for Dot Esports, covering everything from live service games like Destiny 2 and Fortnite to new releases. Writing about games since 2021. When he's not writing, he's probably grinding for loot in Destiny 2.