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Microsoft Closes Three Bethesda Studios, Merges Another with ZeniMax Online Studios

Fallout from Redfall: A Shift in Microsoft’s Game Development Strategy

NEWS  Games  May 8, 2024  Reading time: 2 Minute(s)

mdo Max (RS editor)


Microsoft's recent decision to close three development studios under its Bethesda Softworks gaming division and merge another with ZeniMax Online Studios is reshaping the gaming landscape. Arkane Austin, one of the teams affected by the closure, had been responsible for the vampire-themed shooter "Redfall". Despite mixed reviews, the team was planning a significant update before the announcement.

 

IGN reports, via unnamed sources, that Arkane Austin was developing an offline mode for "Redfall", with plans to release it later this month. This update would have allowed players to enjoy the game without the always-online requirement, extending its life even if its servers were to shut down. Additionally, the studio was working on the "Hero Pack" DLC, which was to add two new hero characters to the game, with a planned release around Halloween 2024.

With the closure of Arkane Austin, the future of these updates and content releases is now in jeopardy. Bethesda has announced that buyers of the "Redfall Bite Back" edition and the "Hero Pass" add-on will receive a credit for their purchases, but specific details about the offer remain unclear.

In addition to Arkane Austin, Microsoft is closing Tango Gameworks, developers of critically acclaimed games like "The Evil Within", "Tokyo: Ghostwire", and "Hi-Fi Rush". The latter gained considerable praise in 2023, making the closure even more surprising. Alpha Dog Games, the team behind the mobile game "Mighty Doom", is also set to close.

 

Meanwhile, Roadhouse Games, another Bethesda studio, is merging with ZeniMax Online Studios, which is best known for "The Elder Scrolls Online". This consolidation reflects Microsoft's broader restructuring in its gaming division.

The impact on employment remains unknown, with Microsoft having previously laid off 1,900 people in the gaming division in late January. As the dust settles from these changes, the gaming community will be watching closely to see how Microsoft's realignment affects its future projects and the employees affected by this restructuring.

 IMAGES CREDITS: ARKANE AUSTIN / MICROSOFT 

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