Microsoft has announced the closure of four game development studios that were acquired as part of their purchase of ZeniMax Media in 2021. These studios include Arkane Austin ( the creators of ‘Redfall’ and ‘Dishonored’), Tango Gameworks (responsible for ‘The Evil Within’ and ‘Hi-Fi Rush’), Alpha Dog Games (known for ‘Mighty Doom’), and Roundhouse Games (a support studio for ZeniMax projects).

This news comes just months after Microsoft laid off 1,900 employees across its gaming division. Though the exact number of impacted employees from the studio closures is unknown, it seems there will be significant layoffs.

The exact reason behind the shutdown of these studios hasn't been officially disclosed, but internal emails obtained by IGN indicate it may be due to a shift towards prioritizing "high-impact titles." This likely means that Microsoft will be focusing resources on already established franchises and studios, like Bethesda Game Studios and id Software.

The closure of Arkane Austin means that development on ‘Redfall’, which has faced numerous negative reviews upon its launch, will be discontinued. However, the game and its servers will remain accessible for players, and Microsoft will provide "make-good offers" to those who purchased the game's premium "Hero DLC" content.

Similarly, Tango Gameworks' ‘Hi-Fi Rush’, which was praised for its unique rhythm-based combat system and stunning art direction, will continue to be available on its current platforms.

This move signifies a changing landscape for Microsoft's gaming strategy. And while some employees from the closed studios are being redistributed to other projects within Microsoft, Many more in the industry have lost their livelihood. Only time will tell if Microsoft has made the right decision.