Microsoft Announces Closure of Several Bethesda Studios, Including Redfall and Hi-Fi Rush Developers

Microsoft has made the decision to shut down several Bethesda studios, including the team behind Redfall, Arkane Austin, as well as the developers of Hi-Fi Rush and The Evil Within at Tango Gameworks. Additionally, the mobile game developer Alpha Dog Studios will be closing, and Roundhouse Games will merge with ZeniMax Online Studios, the creators of The Elder Scrolls Online.

Regarding the game Redfall, Microsoft has terminated all further development, meaning the game will not receive the updates previously promised. Although the game will remain playable online, Microsoft plans to offer compensation to those who purchased the Hero DLC.

An internal email from Matt Booty, the head of Xbox Game Studios, attributed the closures to a shift in focus towards higher-impact projects and an increased investment in Bethesda's key franchises and new IPs. The email emphasized that this restructuring involves integrating some teams into other groups within Bethesda and the unfortunate departure of some staff members.

These moves are part of Microsoft’s broader strategy to refine its focus and invest in major game development, aiming to foster growth within its most successful and promising gaming IPs.