Microsoft Closes Multiple Bethesda Studios, Significantly Impacting Gaming Industry
Microsoft’s Devastating Cuts at Bethesda
Microsoft, currently valued at over $3 trillion, has confirmed the closure of several Bethesda studios, delivering a severe blow to the gaming industry. This corporate decision has resulted in the shutdown of renowned studios, including Arkane Austin, Hi-Fi Rush, Tango Gameworks, Alpha Dog Studios, and Roundhouse Games. The closure of these Bethesda studios, confirmed by IGN, is set to lead to significant layoffs.
Redfall and Arkane Austin Affected
One of the casualties of this decision is the highly anticipated vampire co-op game, Redfall. All further development of the game has been terminated by Microsoft, leaving the promised updates unfulfilled. The game, however, will remain available for players to enjoy, and Microsoft has promised a “make-good” offer to individuals who have purchased the Hero DLC.
Consolidation of Studios and Teams
Several Bethesda studios will continue to operate despite the company’s restructuring. Arkane Lyon, currently working on Marvel’s Blade, is among the surviving studios, along with Bethesda Game Studios, Machine Games, and id Software, the developer of the renowned game series Doom. However, significant realignment will occur as some teams and roles are absorbed by other studios, particularly ZeniMax Online Studios, the developer of The Elder Scrolls Online.
Microsoft’s Justifications and Acknowledgments
In an email to staff, Matt Booty, head of Xbox Game Studios, confirmed these organizational changes, explaining that the decision was made to prioritize high-impact titles and invest in Bethesda’s portfolio of successful games and beloved worlds. Booty acknowledged the disruption caused by these changes and also recognized the immense talent and creativity of the affected teams.
Industry-Wide Layoffs
Microsoft’s announcement of studio closures follows a wave of layoffs across the gaming industry. In the past year alone, mass layoffs have affected numerous high-profile studios. The long-lasting fallout from the COVID-19 pandemic and its impact on the gaming market has contributed to this trend. According to estimates, over 10,000 workers were laid off in the gaming industry in 2023, and one-third of all game developers have directly experienced layoffs or witnessed them at their respective companies, according to a GDC developer survey.
Industry Figures Respond
Dinga Bakaba, the CEO of Arkane Lyon, expressed disappointment and frustration regarding the layoffs through a series of tweets. Bakaba called the decision “absolutely terrible” and urged executives to protect and uphold the well-being of artists and developers within the entertainment industry.
These drastic changes showcased the ongoing turbulence within the gaming industry and reiterated the need for responsible and compassionate decision-making during times of adversity.
