960°

Microsoft Closes Redfall Developer Arkane Austin, Hi-Fi Rush Developer Tango Gameworks, and More

Microsoft has closed a number of Bethesda studios, including Redfall maker Arkane Austin, Hi-Fi Rush developer Tango Gameworks, and more in devastating cuts at Bethesda, IGN can confirm.

Moegooner420d ago (Edited 420d ago )

Hi-Fi Rush studio??? Seriously?? Goes to show quality matters lil to MS.

Worst gen ever. All big 3 battling are for who sucks the most. They just keep one upping one another.

-Foxtrot420d ago

This does feel like a “quick Sony is getting shit on for Helldivers, let’s announce it now to minimise impact”

thesoftware730420d ago

That is silly. Let's say there is some weird conspiracy. This announcement would effectively take ALL the attention away from the HD2 situation, especially since there is no longer an HD2 situation. I don't think anything will minimize this impact.

Tacoboto420d ago

... so they announce it on a Tuesday? 36 hours after Sony cleared up everything?

You people care more about the next conspiracy than anything else.

Nevermind that Sony followed the golden rule of minimizing impact by announcing horrible news on a Friday.

Eonjay420d ago

The constant weekly weird Sony drama is part of the industry's problem. Everyone else feels they can get away with murder. Also, what is the point of spending all that money if you just start shutting studios down. And... Redfall wasn't Arkane's fought. Microsoft new the shape the game was in but needed something for GamePass after a whole year of no releases into the service. Them taking it out on Arkane seems really disingenuous and distasteful. And WTF did Tango do? Didn't Todd just release a statement saying how he would never retire. Fire his ass.

420d ago
darthv72420d ago

wow... i did not have them closing Tango and Arkane Austin on my bingo card.

Hofstaderman420d ago (Edited 420d ago )

Yes it does. Arkane Austin I can understand but Tango Gameworks made an excellent game in Hi Fi Rush.
On review, it want really all on Austin for Redfall and its failure, they were forced to make a multiplayer games when their expertise was always single player driven first person games.

-Foxtrot420d ago

Guys I’m not being all that serious…relax

Outside_ofthe_Box420d ago (Edited 420d ago )

"I don't think anything will minimize this impact."

It already has. Notice your comment(or lack there of) vs HD2.

On another note, I would like to see Microsoft buy more studios and do more shadows drops on subscription services like they did Hi-Fi Rush. It's great for the industry I was told by people on here.

Zeref420d ago (Edited 420d ago )

I'm pretty sure that's exactly how it works. Same thing with layoffs. All of a sudden everyone has layoffs around the same time

Cacabunga420d ago

MS will always make it to amaze me by showing the worse version of themselves every single time..

peppeaccardo420d ago

MS proving to the world that ttheir leadership cannot drive success from these new acquisitions. They have ran the numbers and they have realized that long term, without a clear direction from the motehrship, these are a loss for the company hence they need to be cut. I might be wrong but I am absolutelly sure that if these developers would have not been purchased by Microsoft they would be still on business. A shame ...

senorfartcushion419d ago

Both things have happened but N4G's commenters (90% Playstation ) will follow suit

+ Show (9) more repliesLast reply 419d ago
Einhander1972420d ago (Edited 420d ago )

10/10 deflection, the ol' Sony too deflect...

Let's not discuss the fact that PlayStations struggles have largely been caused by the fact that game pass has reshaped how consumers spend causing them to spend less as they play what is on subscriptions and don't buy games as much because they either have become subscription gamers or they fear the game will come to a subscription so they don't buy things.

And it's not just PlayStation, the whole industry has been effected, many big studios are struggling across the board to match sales targets from pre-game pass releases which is especially apparent in things like sequels.

Heck the best example was Microsoft's own Starfield which should have easily blasted past 10m sales by the end of 2023 going by sales of similar Bethesda games yet was only able to achieve 3m which of course was almost entirely on Steam.

Moegooner420d ago

Or maybe it's because Sony hasn't released multiple worthwhile SP games like they normally do each gen and the ones they did released actually sold well.

Layoffs aren't because studios are struggling, but because major publishers want to maximise profit gains.

Profchaos420d ago (Edited 420d ago )

Absolutely it's a service that's changed the way we view and consume games overall for the worse games have little value when they are part of a sub and become disposable doubly so if they are a day 1 freebie often it's the kiss of death for a game to be day 1 on gamepass as PlayStation players look at it like why do I have to pay 60 dollars for back 4 blood, payday 3 or outriders it'll be on PS plus soon enough and funny enough those games always fail to meet expectations sales are poor and longevity is poor.

When I see a game get a day 1 tag outside of first party my first thought is always something is wrong with it and it can't stand on its own feet so the publisher has made a deal to recoup development cost.

Even first party games have dropped in quality noticeably so since gamepass with gears 5 being the only good release I can think of since gamepass started

Petebloodyonion420d ago

Wasn't aware that Gamepass is available on PlayStation.
Or are you telling us that a service from a console lacking in sales is so great that it affects the morale and buying habits of ppl lacking access to the service?

Also pretty sure that saying all of them competing for who sucks means the whole industry and not just Sony and MS.

Nitrowolf2420d ago (Edited 420d ago )

This is what people online want. They just don't know or understand it. So many have warned about consolidation, and exactly what they have fear has been happening

This isn't the end, expect more bought out studios to be closed in the next few years

Hofstaderman420d ago

Spot on. All in the name "growth" to appease investors and shareholders. Can't sustain the lie though...it will always implode as illustrated by these closures. Applies to MS and Embracer.

TiredGamer420d ago (Edited 420d ago )

This. ^

Publishers are slowly mitigating all development risk since every new big/medium budget game has become too big to fail. Games are too expensive to make and the profitability for titles rests on a hair’s edge. When you need to sell 5 million copies of a game to be profitable, you know that we’ve turned a new page in gaming. The real victims here are the smaller studios/games that bring so much character and variety to the industry, like with Hi-Fi Rush.

It looks to me that Hi-Fi Rush did not fulfill financial expectations for moving the GamePass needle, and the sales from the PlayStation port experiment did not measure up either. So it gets the boot.

Sad day and era for gaming.

notachance419d ago

yeah smaller ABK studios like Toys For Bob are now in dangers

notachance420d ago

I just don’t know how the hell a company that can spend $67b to purchase a publisher decided that it’s okay to close the studio that produces their best game last year.

Whoever the higher up there that decides this is completely out of touch of how the game industry works, the damn xbox division as a whole would’ve been closed already if they weren’t sustained by other MS divisions.

shinoff2183420d ago

I got in an argument with someone on reddit and they weren't haven't that Xbox isn't propped up by other divisions argument. They swore up and down that Xbox was pulling its own weight. I just stopped after a couple back and forths

TiredGamer420d ago

Didn’t move the GamePass needle and the PlayStation port couldn’t save the return on investment….

SeTTriP420d ago Show
dumahim420d ago

So this is what happens when you're pleased with the sales and investing in the studio? Good guy Phil at it again.

Sonic1881420d ago (Edited 420d ago )

From Aaron Greenburg:

"Hi-Fi RUSH was a break out hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release."

😂😂😂 🤥🤥

Lightning77420d ago (Edited 420d ago )

Once again MS creates their own problems and they create their own animosity. Idc about their shitty excuse and "reasons" they're a incompetent company, plus all their Xbox fanboy influencers are dwindling I noticed. How many excuses can you make for a company like MS? Consoles are down and they're losing their own fanboy influencers also. That's all they had to cheer lead them now they're leaving them. Pretty nobody will be on MS dude no matter if they (if they ever but I doubt it) get their act together.

Trashy ass ppl and company....

If they go under eventual it's because of their own doing nobody else's.

porkChop420d ago

Yeah overall this gen is pretty shit. Everyone is making horrible decisions, great devs are getting either gutted or entirely shut down regardless of quality or success, very little in the way of innovative games, etc. This industry needs to see some drastic changes.

badz149419d ago

where are all the cheerleaders for MS acquisitions amid all these?? you guys happy now? this will not be the end of it, maybe just the beginning!

OptimusDK419d ago

Maybe it has to do with this:
Hinji Mikami is leaving Tango Gameworks in the coming months.On February 23 it was reported that Mikami would be departing Tango Gameworks. Bethesda has stepped in to confirm the report of Mikami's forthcoming departure from the studio he founded over a decade ago.

Mikami originally founded Tango Gameworks in 2010 after departing Capcom, having lead the development of iconic games like Resident Evil and Resident Evil 4.

+ Show (8) more repliesLast reply 419d ago
shadowT420d ago (Edited 420d ago )

Tango Gameworks and Arkane?

RaidenBlack420d ago

Arkane Austin (Prey developer)
Not Arkane Lyon ( Dishonored developer)

Crows90420d ago

Prey was fantastic. Red fall was shit because they were forced to do shit they didn't want to make.

Atkane Lyon did death loop I believe....I hated that one.

shinoff2183420d ago

I personally liked prey more.

RaidenBlack420d ago

@shinoff2183
Because Prey was creative and different
Other than the live service Redfall, all other single-player Arkane projects have been creative and interesting

Tankbusta40420d ago

@Crows90

So just because people don't want to do something in life...bad quality is excused? Look what happened over that bad quality? no more studio

+ Show (1) more replyLast reply 420d ago
MrDead420d ago

Will be more soon, I've said it before I can't see MS keeping Bethesda. I think they'll strip it's IPs and slowly close everything, it's what they do.

VariantAEC420d ago

No one wants to admit it, but yeah MS has a long history of pillaging other smaller corporations for IP and dispensing with everything else.

Zeref420d ago

That doesn't make any sense lol. How would they make money from these IP'S with no developers?

MrDead420d ago (Edited 420d ago )

@Zeref
"That doesn't make any sense lol. How would they make money from these IP'S with no developers?"

MS don't care about the studios, they want the IP's. They'll keep the big ones in house, the game engines they run on and licence the rest. Stacks of cash to be made from licensing IP's ...or just sit on them so no one else can use them.

blackblades420d ago

@Zeref silly fool, buy them for the IP have there other studios make the games using the IP names to sell them. We all know having a popular franchise name can sell

+ Show (1) more replyLast reply 420d ago
Einhander1972420d ago (Edited 420d ago )

Well xbox fans you got what you asked for... and honestly deserved...

It was so easily predictable that game pass was never going to be able to support all these studios.

If Microsoft can't win they are going to burn it all to the ground...

Countdown to Phil Spencer telling us "it's better for the gamers this way" yet again.

Barlos420d ago

Agree but gamers didn't ask for people to be out of work.

VenomUK420d ago (Edited 420d ago )

@Barlos They indirectly did. Every person who made a wish list of who Microsoft should buy next and were sending tweets to Phil Spencer and Xbox with proposed studios, played a part.

The saddest part is the studios were closed because of the underperformance of their last games, and if they had been given a chance then their next games could’ve been great and succeeded. But it is the same old Phil Spencer Microsoft problem which is not giving them a chance, and that’s why he is not able to manage game studios.

VariantAEC420d ago

Yeah they did. Just because they refused to see what everyone with a brain was telling them doesn't mean they didn't know. They were told, they should've put up a fight and they didn't. This is the result. But who knows even if MS' fans weren't such boot-lickers, MS could've carried this out against their fans wishes anyway. Unfortunately, we have the hardcore MS defense bots running to deflect from any bad news and maybe, just maybe, MS felt empowered to do more damage as a result of their fans cheering this all on.

anast420d ago

They sold themselves out. Once people buy you they can do what they want. None of this should have been a surprise. When companies get bought out, they eventually get dismantled.

shinoff2183420d ago

Xbox fans were to busy daydreaming of Ms curbstopping Sony they didn't look at the big picture.

Einhander1972420d ago

Not disagreeing at all.

I want to add that from the day Microsoft announced game pass, before they even started buying up studios it was obvious that game pass wasn't going to be able to support itself.

It was so dumb that they doubled down on it by spending 100B on a service they knew only existed through subsidization.

They should have realized there was no way that adding massively more costs on a subscription they were subsidizing was certain to fail. Especially after seeing how it had devastated sales across the platform as a whole.

Heck by the time this generation started during covid when the console sales were similar PlayStation was already outselling xbox on multiplatform games 8:1 yet they still doubled down on it.

420d ago
Relientk77420d ago

This is beyond wrong. Like wtf!? Especially Tango Gameworks with Hi-Fi Rush. I've heard nothing but good things about that game. Just because Arkane Austin screwed up one game release doesn't mean you need to close them. It sounds like they were forced to do a multiplayer game when they're a single player studio. They could have made a Prey 2 or some other game next.

Just wow awful news.

Einhander1972420d ago

Apparently PlayStation owners didn't buy enough copies of Hi-Fi Rush...

420d ago
RpgSama420d ago

@Romulus23

All lies by the Green Bug, that just means that a lot of people fired bullets or whatever in the game, that's the key measurements they care to share.

Tango did NOT deserve to be closed down, they have not released a single bad game.

Crows90420d ago

That's usually what happens when you don't release it at the same time as other platforms....same thing happened with tomb raider reboot sequel. MS got exclusivity for a year and then when it came to PlayStation it barely sold. Nobody cared anymore.

shinoff2183420d ago

Still waiting on the physical release pre order window

VariantAEC420d ago

Well... I did my part. Hi-Fi Rush is a good game, but I don't think its MS' style. We don't really know how well it did or didn't perform by the numbers or whether it broke even. This could just be another MS blunder.

Elda420d ago

Exactly. MS purchasing a 3rd party studio & keeping games off of other platforms probably hurt them in the long run, then finally putting Hi Fi Rush on PS which in turn PS fans probably didn't care to buy & support Hi Fi Rush after a year later of release. Hi Fi Rush was released on Gamepass so it probably never really made any money selling solely.

Eonjay420d ago

@romulus23

Let's hope it didn't sell well because that would make this worse. Also I could have sworn I read an article about their next game in the works.

Seraphim420d ago (Edited 420d ago )

I was wondering if that played any part considering the timing, though, XB claimed the game to be a success last year only on XB & PC. Regardless MS f'd up there too. They shadow dropped HiFi on XB/PC last year at the perfect time. This year when they released on PS not only had the hype died, but there were so many solid games available the first 3 months of this year to play.

I almost bought it on PC last year, but now that it dropped on PS I just have far too many games to play to bother...

If MS needs PS and even Switch sales they need a better strategy. At the very least a release date where players are more inticed to buy said game. The problem is always going to be that if they want exclusives the hype for these games will be dead a year later. The exceptions might be some of their heavy hitters.... 2 cents

Angyobangyo419d ago (Edited 419d ago )

PS and PC owners probably bought more copies that Xbox owners.

+ Show (6) more repliesLast reply 419d ago
CrashMania420d ago

I can only imagine the little amount of revenue both games generated, sent straight to gamepass and excluded from the largest current gen console userbase. Not to say both games would have done well if they were on PS5 too, but you heavily damage to a games revenue when you put it on a stagnating sub service for a poorly selling console, can't really see people going out in droves to sub to GP to play this.

shinoff2183420d ago

Gamepass subs(most of Xbox players) don't buy games all like that so it's not sustainable. It's reality.

RaidenBlack420d ago

Yea Austin made one of the most creative game of last gen with Prey and were forced to take risk with Redfall and now the whole studio is being closed.

Aphrodia420d ago

Yes, that Tango gameworks/ Hi-Fi closure was an eye opener for me as well. Neither played it nor was interested in it myself but all I heard was everyone acting like it was the second coming of guitar hero or something.

I don't know what else to say other than modern gaming is an overwhelming sea of mediocrity and there's not enough voices of reason speaking up and saying that most games made these days are just not very good.

shinoff2183420d ago

Your playing the wrong games then. There's always been shovelware type games. Going back to wii, snes, nes, ps1 Xbox og. That's a bs blanket statement. As an older gamer since atari days I'd personally say this is a great time. If you can't find anything to play. That's on you

With all that said in no way or form am I speaking of multi-player games, gacha, or whatever. I'm strictly speaking on single player games.

Aphrodia420d ago

you are hilarious. trying to validate your comment by excluding over half of the games out there today. Pathetic man.

Neonridr420d ago

I'm more devastated at the loss of The Evil Within.

Chevalier419d ago

Wait I was told Xbox had great engagement numbers?! Some Xbox fans said they bought games when I told them Xbox customers don't buy games?

So Xbox bought studios to keep games off other platforms and forgot they conditioned Xbox customers to not buy games. Whoops.

So anyone else think Outer World's 2 dies 🤔? I'm thinking a small game losing out on Nintendo and Playstation gamers buying will kill this IP. But it's okay Xbox fans can get more COD! Halo, Gears and Forza! Woot that's a 'win'. Yay Gamepass FTW

+ Show (3) more repliesLast reply 419d ago
CrashMania420d ago

Can't wait to see the usual try spin and play this down. So much for the heroic MS and Phil saving these studios eh.

Eonjay420d ago

By the end of the day IGN will be talking about how this is right for the industry. Don't worry, Microsoft's PR is making the call now.

RpgSama420d ago

Tango did NOT deserve to be closed down, they have not released a single bad game, and I'm sure Arkhane failed just because they were both rushed and pressured into making a GaaS game they had no experience in doing and no support to get it completed out of the gate.

PrinceOfAnger420d ago

Not a big deal only hi fi rush was good

Sony has closed
Manchester studio
Japan studio
Pixel opus
London studio
Ready At Dawn ...

RupeeHoarder420d ago

The difference being Sony has a large group of other studios that have done something positive. Microsoft just closed the studio to the only good game they released in the past year (Hi-Fi Rush).

CrashMania420d ago

They all suck as well of course. But MS spent 10s of billions on these publishers for mass consolidation, every made a song and dance about how MS would save them, using their endless Windows, 365 and Azure money to keep them open forever and how Phil was some hero.

Nothing is safe unless it makes money, even for MS.

420d ago
Einhander1972420d ago (Edited 420d ago )

Wow how far back do you want to go back.

Lionhead Studios
Aces Game Studio
BigPark
Carbonated Game
Digital Anvil
Ensemble Studios
FASA Studio
Good Science Studio
Hired Gun
Microsoft Studios Japan
Microsoft Studios Victoria
Team Dakota
Xbox Entertainment Studios
Xbox Live Productions
Lift London
Access Software
Salt Lake Games Studio
Twisted Pixel Games
WingNut Interactive

And more before this, this was just their cuts during xbone era that Phil cut while he was at the head.

And some of those PlayStation studios were merged not closed, most of the UK studios were folded into each other.

Japan Studio was renamed to Asobi not closed, aAsobi was an internal team of Japan Studio the "closure" the press misinformed people about was more or less a name change, the studio is in the same building and when the change happened less than 5 people mostly leadership positions chose to leave the studio to form Bokeh Studio, which still works closely with Sony.

And even if your deflection stood on it's own, Microsoft spent 3 Billion 3 years ago almost to the date to buy Zenimax and has already closed 2 of it's biggest studios and decimated Zenimax's support studio structure.

It's no wonder Todd Howard was talking about "more frequent releases" and letting other studios make their IP's games. The days of big budget huge Bethesda games is over...

In fact sadly Microsoft has ushered in the end of big budget gaming as we know it with their obviously unsustainable subscription industry change.

And I feel fully confident that this isn't the end of studio closures from these recently purchased studios.

Abnor_Mal420d ago

Ready At Dawn was never a Sony owned studio, and only made a few smaller God of War games and a Jax and Daxter spin off, and of course The Order1866.

They are currently owned by OcUlus Studios.

MrDead420d ago

How many times has MS fired Bethesda staff since they purchased it? I think it's been three rounds so far

BehindTheRows420d ago

Deflection is the finest form of delusion.

shinoff2183420d ago

London studio what have they made recently. Really the worst one was Japan studio. That sucked.

In reality though your deflecting. The fact of the matter is Ms just closed the studio that made their highest rated game in years. That's insane.

Hofstaderman420d ago

Also many of those staff were absorbed into other studios.

VariantAEC420d ago (Edited 420d ago )

Ready At Dawn was never a PS first party studio.
Manchester was closed and it was proposed that London should be closed, but their website is still up with no news about it being closed on their official site anywhere. So it's possible that the proposed closure just did not happen to get fufilled. Meaning London Studio *MIGHT* still be open running lean.

Edit: Japan Studio was closed with some staff making up the new Asobi Team Studio who's first title was the PS5 pack-in game "Astro's Playroom." Pixel Opus was closed and not replaced or spun-off their only games were Entwined and Concrete Genie they also helped publish Journey according to Wikipedia.

Chevalier419d ago

Man you got crap info

Sony never owned Ready at Dawn. It's now owned by Oculus.

https://en.m.wikipedia.org/...

+ Show (9) more repliesLast reply 419d ago
Tacoboto420d ago

Phil needs to step down. What kind of usual spin do you want?

More and more people lose jobs but the people at the top stay the same. Hardware sales tank despite billions and billions spent. The math is plain and simple.

Sonic1881420d ago (Edited 420d ago )

I'm still trying to figure out what was the real reason to acquire Bethesda for millions or Billions of dollars if you're closing down studios 🤔 What were their true intentions 🤔 I mean do Microsoft really want to be a third-party publisher? It sounds like they're confused.with their future in gaming

VariantAEC420d ago

@Sonic1881
To rape each studio for their sweet succulent ultra-valuable IP. This is Microsoft's favorite past-time.

Show all comments (217)
110°

Xbox Mass layoffs Are Expected To Hit On July 2, 2025

The previously rumored mass layoffs at Xbox are expected to happen on Wednesday, July 2, 2025, according to a new rumor.

Read Full Story >>
twistedvoxel.com
7h ago
lukasmain3h ago(Edited 3h ago)

They will have fired close to 20,000 people all up after this round of lay-offs coming, since the ABK deal announcement in January 2022. Shocking really

January 2023:
Microsoft laid off 10,000 employees, which was a significant workforce reduction.

January 2024:
Approximately 1,900 gaming employees were laid off following the Activision Blizzard acquisition.

May 2025:
Microsoft announced a further 6,000 layoffs as part of an organizational shift.

June 2025:
Additional layoffs, including 650 in the gaming business, focused on corporate and support functions

Indawd2h ago

Xbox hasn’t laid off 20000 employees. Do they even have 20000 employees?

Terry_B1h ago

Microsoft has over 230000 employees.

Indawd47m ago(Edited 47m ago)

And over 95% of them don’t work at Xbox

Obscure_Observer2h ago

"They will have fired close to 20,000 people all up after this round of lay-offs coming, since the ABK deal announcement in January 2022. Shocking really"

It's not that shocking considering these numbers aren't just Xbox numbers as you're deliberately trying to make it seem for some reason.

Interestingly, another no shocking fact is that whenever Microsoft releases its quarterly earnings reports, you're quick to point out that those numbers aren't exclusive to Xbox. Yeah... go figure.

Hereandthere40m ago

Let's hope its not as bad as socials are making it, good luck to those that unfortunately lose their jobs.

Indawd28m ago

It might not even be real lol

One anonymous source started this entire rumor mill

240°

‘I think Xbox hardware is dead’, says Microsoft gaming veteran

One of the founding members of the Xbox team has questioned Microsoft’s multiplatform gaming strategy, and said they believe the Xbox hardware business is effectively “dead"

Read Full Story >>
videogameschronicle.com
2d ago Replies(3)
Goodguy012d ago

Think that rumor that they'll still make a new console but at a profit at $1000 will be true though. The series consoles will remain their cheap alternative throughout next gen I would say. Keep in mind that game pass and pretty much going 3rd party is their main focus. They want to bring xbox everywhere.

2d ago
GamerRN1d 3h ago

If they don't maintain some kind of console presence, I think they will lose gamepass subscribers and just become a 3rd party publisher who eventually sells everything off

Cacabunga1d 2h ago

Xbox games are releasing on all platforms. Who needs this hardware? PS or PC is all you need

Flewid6381d 1h ago

I've never owned an Xbox in my life and I have GamePass.

thorstein1d ago

The only Xbox I owned was the 360. I have gamepass for my PC.

GamerRN19h ago

Majority of Gamepass users are currently on console...

+ Show (1) more replyLast reply 19h ago
crazyCoconuts1d 2h ago

Even if they could get it down to $800 for a box that can run with comparable performance to a PS6 (at, say $200 cheaper) the population of people willing to buy such a thing would be so limited.
It would be the worst of both worlds.

1d 22h ago
Futureshark1d 12h ago

A slow, painful and public death too.

Show all comments (66)
60°

Rogue Trader producer reveals his dream project: a CRPG SCP game with an actual budget

Owlcat Games producer Anatoly Shestov reveals his dream project: an SCP game with Owlcat RPG flair and a proper budget.

Read Full Story >>
videogamer.com