Microsoft is starting to make major cuts and layoffs in its gaming division. Microsoft is making additional, major cuts and layoffs in its gaming division. The company has decided to close or merge a number of game development studios under Bethesda Softworks, IGN reported today in an email written by Xbox Game Studios’ Matt Booty.
In the sent mail, it was stated that Arkane Austin, the producer of games such as Prey and most recently Redfall, will be closed and some team members will be shifted to other Bethesda projects. Additionally, Japan-based Tango Gameworks studio, the producer of The Evil Within and Hi-Fi Rush, will also close.
Alpha Dog Studios, which released the mobile game Mighty Doom in 2023, is also being closed down with the same decision. Additionally, Roundhouse Games is merging with the ZeniMax Online Studios team.
Despite the studio closures and layoffs, Microsoft states that the part of the Gaming division under the Bethesda Softwork infrastructure is still one of the pillars of Xbox.
Microsoft has not yet announced how many Bethesda team members will be laid off with these changes. We know that the company laid off a total of 1900 people in the past months. It is not yet known what the general structure of the company will be like with the new decisions.
