Microsoft Shuts Down Several Game Developers, Reorganizes Resources in Major Restructuring Move
On May 7th, Microsoft shocked the gaming industry by announcing the sudden shutdown of several game developers, including Tango Gameworks, Arkane Austin, and four other ZeniMax Media studios. This decision is part of a large-scale reorganization of development resources as Microsoft aims to focus on high-impact projects and support Bethesda in nurturing its beloved game franchises.
According to an internal letter obtained by IGN, Matt Booty, the head of Xbox Game Studios, stated that the restructuring is aimed at helping Bethesda develop masterpieces and enhance the gaming experience for players. Following the disbandment of Arkane Austin and Tango Gameworks, some team members will join other studios to assist with ongoing projects.
In addition to the closures of Alpha Dog and Roundhouse Games, the fate of the vampire shooter “Bloodline” remains uncertain as Microsoft has terminated its development. The company has promised to maintain online servers for the game and offer compensation to players who purchased DLC.
Despite the layoffs and closures, certain studios like Arkane Lyon, MachineGames, and id Software remain unaffected by the restructuring. Bethesda Game Studios also escaped unscathed, but a few members of the publishing and enterprise teams may face layoffs.
Matt Booty reassured employees that Bethesda remains a crucial part of Xbox, with a strong game portfolio and a thriving community. While acknowledging the impact of the changes, he emphasized the need to invest in priority projects and free up resources for future endeavors.
As the affected employees prepare for the next steps in their careers, Microsoft has pledged to provide full support and abide by legal provisions regarding resignations. The company emphasized the importance of treating departing colleagues with respect and compassion during this challenging time.