The video game industry has reacted with shock and anger after Microsoft shut down several game studios today, May 7, 2024 including Arkane Austin and Tango Gameworks, the developers of Redfall and Hi-Fi Rush respectively.
Both developers and fans have shared their disappointment at the closures, announced to staff via email on the morning of May 7, 2024. Head of Xbox Game Studios Matt Booy told employees of the studios, which joined Microsoft under Bethesda parent company ZeniMax, the cuts were a result of the “reprioritization of titles and resources.”
“This is absolutely terrible,” wrote Arkane Lyon director Dinga Bakaba on X/Twitter, whose studio survived the closures and will continue working on Marvel’s Blade. “To any executive reading this: friendly reminder that video games are an entertainment and cultural industry, and your business as a corporation is to take care of your artists and entertainers and help them create value for you.”
This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.
— Dinga Bakaba (@DBakaba) May 7, 2024
“Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations or 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. We know you can, we’ve seen it before.
“For now, great teams are sunsetting before our eyes, again, and it’s a f**king gut stab. Lyon is safe, but please be tactful and discerning about all this, and respect affected folks’ voice and leave it room to be heard, it’s their story to tell, their feelings to express.”
Several other developers weighed in on the closures too, which also affect mobile game developer Alpha Dog Games. It’s unclear how many staff have lost their jobs across the three studios, but Microsoft, currently valued at more than $3 trillion, declined to expand further when contacted by IGN.
“Arkane Austin and Tango being shut down is the biggest let down from the Microsoft acquisitions.
“Arkane Austin and Tango being shut down is the biggest let down from the Microsoft acquisitions,” wrote Anthony Panecasio, level design team lead on Splinter Cell Remake at Ubisoft Toronto, on LinkedIn. “They were making exciting new IP, even if they were rough around the edges. I played both Redfall and Ghostwire: Tokyo to completion when they launched and still have fond memories of them.”
Sebastien Mitton, co-creative director at Arkane Lyon, called the closures a “very, very bad wake up call” on X/Twitter. “A thought for our brothers and sisters in Texas, Canada, and Japan who are going through a very difficult time. Our hearts go out to all of you in this terrible ordeal.”
Adam Boyes, co-CEO of Iron Galaxy Studios and former PlayStation executive, didn’t comment on the closures directly on X/Twitter but did share a screenshot of a GeekWire article from April 25, 2024 which showed Microsoft posted a 17% increase in revenue and $21.9 billion in profit in its latest financial earnings report.
— ᴀᴅᴀᴍ ʙᴏʏᴇs (@amboyes) May 7, 2024
“To everyone whose been pestering me for years about why we didn’t allow Moon Studios to get acquired by a big publisher, that’s why,” wrote Thomas Mahler, boss of the studio behind Ori and the Blind Forest, on X/Twitter. “I’ve lived through the 90s and saw what happened when smaller studios got acquired by EA.”
Former Blizzard president Mike Ybarra, meanwhile, posted a lengthy statement on X/Twitter, addressing the “anger and confusion” following the news, but also pushing back on “shots at (Xbox boss) Phil (Spencer).”
“I know this hurts him as much as anyone else,” Ybarra wrote, in part. “I can’t speak for all of the leadership there, but I do know him and I do know what he is likely going through.”
“I’m not trying to defend the decisions. I think we all get ourselves into situations that are tough and unexpected (certainly I have),” he continued. “It’s part of the job, as is the accountability for the outcomes. But he’s a good human and he cares deeply for the creative process and developers. That’s my first hand experience in working closely with him for 8+ years and knowing him for 24+.”
I see a lot of shots at Phil over today’s Xbox announcements. I get it. But knowing him as a human, I know this hurts him as much as anyone else. I can’t speak for all of the leadership there, but I do know him and I do know what he is likely going through.
I’m not trying to…
— Mike Ybarra (@Qwik) May 7, 2024
Others, meanwhile, have put a spotlight on previous comments from higher-ups saying they’ve learned their lesson from studio closures like Fable developer Lionhead. One clip in particular that’s been making the rounds has Spencer and Xbox’s Sarah Bond talking about Microsoft’s acquisition of Lionhead in 2006 and subsequent closure of the studio in 2016.
“A couple years later, we reflected back on that experience,” Bond said in the resurfaced clip. “What did we learn? How do we not repeat our same mistakes?”
“Unfortunately, you learned absolutely nothing, Xbox,” wrote @klobrille on X/Twitter.
Myriad developers also shared job opportunities and offered advice to their industry peers affected by the closures. “I am absolutely shocked at the closing of Arkane Austin, Tango, and Alpha Dog,” said Epic Games principal engine programmer Emanuel Masciarelli on LinkedIn. “If I worked with you and can help you get a job, either here at Epic or at another company that I have connections with, please, please, reach out. I can help with resume reviews, anything.”
Fans of the affected studios have also taken to social media to express their shock and anger over these unexpected closures too. “My heart just broke,” said BethA69 on a Reddit post discussing Arkane Austin’s closure and the cancellation of Redfall’s downloadable content.
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.
— Aaron Greenberg 🙅🏼♂️💚U (@aarongreenberg) April 21, 2023
“This is honestly pretty painful,” added Shameer2405. “Redfall was one of my most anticipated games last year and even though it disappointed me, I thought it had a lot of potential to be better. It’s a shame that’s not going to happen anymore.”
Those discussing Tango Gameworks and its 2023 hit Hi-Fi Rush shared similar sentiments, with many pointing to an X/Twitter post from Microsoft executive Aaron Greenberg that declared the game “was a breakout hit for [Xbox] and [its] players in all key measurements and expectations.” He said Microsoft “couldn’t be happier with what the team at Tango Gameworks delivered” when it hit two million players after a month and received high praise from critics.
But just over a year later the studio was shut down. “So this is how it ends,” wrote Tango Gameworks creative director and Hi-Fi rush director John Johanas on X/Twitter. “Unfortunately I don’t quite have the words. But at least thank you to everyone who supported us.”
“Tango being shut down after the success of Hi-Fi Rush is bonkers.
“This whole acquisition thing was great for the industry, right?” asked PimentaGui on ResetEra. “Microsoft’s spending spree continues to have long lasting terrible effects on the industry,” said Baoben. “Tango being shut down after the success of Hi-Fi Rush is bonkers,” added Einbroch.
Microsoft acquired ZeniMax in 2021 for $7.5 billion and with it came Bethesda studios such as Arkane, Tango Gameworks, and Alpha Dog Games. Its acquisition streak reached new heights in 2023 with the $69 billion acquisition of Activision Blizzard, which finally went through in October 2023, just six months before it closed these other studios.
Xbox also announced The Elder Scrolls Online developer ZeniMax Online Studios would absorb Roundhouse Studios, but the other Bethesda teams would be unaffected. Starfield and The Elder Scrolls 6 developer Bethesda Game Studios, Indiana Jones and the Great Circle developer Machine Games, Doom developer id Software, and the aforementioned Marvel’s Blade developer Arkane Lyon are all unaffected.
Editor’s note: This story has been updated to include comments from Mike Ybarra, and may be updated as more comments come in. A previous version of this story called Ybarra the president of Blizzard Entertainment; he is the former president, and the story has been updated accordingly.
Ryan Dinsdale is an IGN freelance reporter. He’ll talk about The Witcher all day.