Microsoft announced on May 7, 2024, that it was closing Arkane Austin, Tango Gameworks and Alpha Dog Games, while folding Roundhouse Games into ZeniMax Online Studios. The decision ended further development on Redfall, eventually led to the shutdown of Mighty DOOM’s servers, and appeared especially jarring because Tango’s Hi-Fi Rush had been widely praised inside and outside Xbox.
The changes affected studios that Microsoft had acquired as part of its purchase of ZeniMax Media. They were presented as a reprioritization of Bethesda’s titles and resources—not as a public admission that any one game alone caused a studio’s closure. A later development softened one part of the story: Krafton recruited Tango development staff and obtained the Hi-Fi Rush intellectual property in August 2024.
What Microsoft announced on May 7, 2024
The announcement was communicated internally in an email attributed to Matt Booty, then head of Xbox Game Studios. Microsoft said Bethesda was reorganizing its teams to concentrate investment on a smaller number of higher-impact titles and projects. The changes affected four teams:
| Studio | Microsoft’s 2024 action | Immediate consequence |
|---|---|---|
| Arkane Austin | Closed | Further development on Redfall ended. |
| Tango Gameworks | Closed | The team behind Hi-Fi Rush, Ghostwire: Tokyo and The Evil Within series was dissolved under Microsoft ownership. |
| Alpha Dog Games | Closed | The studio associated with mobile game Mighty DOOM was shut down. |
| Roundhouse Games | Folded into ZeniMax Online Studios | Roundhouse stopped operating as a separate studio, but its staff continued within ZeniMax Online in support or development roles. |
That last distinction matters. Roundhouse was not treated in exactly the same way as Arkane Austin, Tango Gameworks or Alpha Dog Games. Calling all four studios “closed” leaves out the fact that Roundhouse’s personnel were moved into another ZeniMax organization. [CIT001][CIT002][CIT003]
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All four teams belonged to Bethesda’s wider organization after Microsoft acquired ZeniMax Media. Xbox’s announcement welcoming Bethesda to the company specifically listed Arkane, Tango, Alpha Dog and Roundhouse among the studios joining Xbox. [CIT007]
Arkane Austin’s closure ended Redfall development
Arkane Austin was best known for Prey (2017), an acclaimed immersive simulation, and Redfall (2023), a cooperative open-world first-person shooter. Redfall launched for Xbox Series X|S and PC on May 2, 2023. It supported solo play as well as cooperative play for up to four players. [CIT008][CIT009]
With Arkane Austin’s closure, Microsoft ended further development on Redfall. Planned post-launch content, including additional hero-related content, was no longer expected to continue.
It is tempting to describe the closure as a direct punishment for Redfall’s reception, but Microsoft’s public explanation did not establish that Redfall alone caused the decision. The announcement framed the cuts as a broader portfolio and resource-reallocation decision. That leaves room for performance, strategy, production conditions and other business factors, but it does not support a simple “one game caused the closure” conclusion. [CIT001][CIT002][CIT003]
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Tango Gameworks had created The Evil Within, The Evil Within 2, Ghostwire: Tokyo and Hi-Fi Rush. The studio’s closure drew particular criticism because Hi-Fi Rush had become one of Xbox’s most distinctive recent releases.
The rhythm-action game combines beat-synchronized combat, stylized animation and music-driven level design. It was developed as a relatively unexpected project and released through a shadow-drop strategy. Xbox’s own developer history described the unusual production process, while the game was made available on Xbox Series X|S, Windows PC and Game Pass. [CIT010][CIT012]
The apparent contradiction became sharper because Aaron Greenberg, a Microsoft Xbox marketing executive, had previously characterized Hi-Fi Rush as a breakout hit that met important measurements and expectations. That statement explains why the closure surprised players and developers, but it does not prove that the game was profitable, nor does it prove that its success should have been sufficient to preserve the entire studio.
In other words, a game can perform well by some internal or audience measures while its studio still faces a separate decision about budgets, leadership, staffing, future projects or the company’s overall portfolio. The available public comments do not provide a complete financial accounting for Tango’s closure. [CIT002][CIT011]
Matt Booty later described the decision as forward-looking and suggested that Microsoft had to consider whether the conditions that had enabled a studio’s earlier success—including leadership and organizational factors—were still present. Phil Spencer separately said Xbox had to operate as a sustainable business. Those comments offer Microsoft’s strategic framing, but neither supplies a detailed explanation of Tango’s finances or a single definitive cause for the closure. [CIT004][CIT005]
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Krafton brought back much of Tango’s team
The Tango story changed after Microsoft’s closure. On August 12, 2024, Krafton announced that it had recruited Tango Gameworks development staff and obtained the Hi-Fi Rush intellectual property in cooperation with Xbox and ZeniMax. Krafton described the transaction as its first investment in the Japanese game market and said it was bringing in the local development team while securing the popular IP. [CIT013]
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Krafton’s later financial materials listed Tango Gameworks, Inc. as a newly established subsidiary and described the integration of the Tango development team. This means Microsoft’s 2024 closure remained real: Tango Gameworks did end as a Microsoft-owned studio. But a substantial part of the creative organization and the Hi-Fi Rush IP continued under new ownership instead of disappearing entirely. [CIT014][CIT015]
There are two important limits to what has been confirmed:
- The evidence does not show that every former Tango employee joined Krafton.
- Krafton’s move did not amount to a formal announcement of a Hi-Fi Rush sequel.
Physical console editions for PlayStation 5 and Xbox Series X were also announced for Hi-Fi Rush, with reporting identifying a partnership with Limited Run Games. That creates a useful preservation angle for a game that first became widely available through digital distribution and Game Pass. [CIT016][CIT017]
Alpha Dog Games and the end of Mighty DOOM
Alpha Dog Games was associated with Mighty DOOM, a mobile spin-off of id Software’s DOOM franchise. Its closure had a particularly clear product-level consequence: the game’s live service did not continue indefinitely.
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Bethesda Support records show that Mighty DOOM’s servers shut down on August 7, 2024. Once the servers were taken offline, the closure affected not only the studio’s employees but also the game’s ongoing availability as a live service. [CIT006]
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Roundhouse Games was absorbed, not simply eliminated
Roundhouse Games was the outlier in the announcement. Rather than being shut down as a standalone operation, it was folded into ZeniMax Online Studios. Reporting on the internal announcement said that Roundhouse staff would continue in support or development capacities within ZeniMax Online.
That move still meant the Roundhouse identity and independent organizational structure no longer continued in the same form. However, it should not be reported as an identical closure alongside the other three studios. The most accurate description is that Roundhouse was folded into ZeniMax Online Studios. [CIT002][CIT003]
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Why the cuts became a wider industry controversy
The reaction was driven by more than the number of affected teams. The decision collided with a difficult question about how large publishers measure success:
- Creative reputation: Hi-Fi Rush was unusual, mechanically focused and critically admired.
- Internal praise: Xbox marketing had described the game as a breakout hit that met important expectations.
- Portfolio economics: Microsoft said it needed to prioritize selected titles and resources.
- Studio continuity: A successful project does not guarantee that the same leadership, team structure or production conditions will remain in place.
- Industry contraction: The closures occurred during a broader period of layoffs and studio reductions across game development, although there is no single authoritative headcount in the available reporting for all four affected teams.
These facts can coexist without producing a complete public answer about Microsoft’s internal calculations. Hi-Fi Rush’s reception and reported performance indicators explain the backlash. They do not, by themselves, establish profitability or prove that Microsoft’s stated portfolio rationale was false.
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What happened to the games?
| Game | Studio connection | Known outcome after the 2024 changes |
|---|---|---|
| Redfall | Arkane Austin | Further development ended when Arkane Austin closed. |
| Hi-Fi Rush | Tango Gameworks | The IP and development staff were later recruited by Krafton; no sequel was formally confirmed in the cited material. |
| Mighty DOOM | Alpha Dog Games | Servers shut down on August 7, 2024. |
| Prey | Arkane Austin | Released before the closure and unaffected as an already released catalog game. |
| The Evil Within series | Tango Gameworks | Existing released games remain part of Tango’s legacy; the closure did not erase those releases. |
| Ghostwire: Tokyo | Tango Gameworks | Existing released game from the studio’s catalog. |
The accurate current summary
Microsoft closed Arkane Austin, Tango Gameworks and Alpha Dog Games in May 2024. Arkane Austin’s closure ended Redfall development, and Alpha Dog’s associated game Mighty DOOM later lost server support. Roundhouse Games was folded into ZeniMax Online Studios rather than simply shut down.
Tango Gameworks then received a partial revival under Krafton: development staff were recruited and the Hi-Fi Rush IP was obtained. That later rescue does not undo Microsoft’s closure, does not prove that every former employee transferred, and does not confirm a sequel. It does show that the studio’s creative work and part of its team continued in a new corporate home.
Frequently Asked Questions
Did Microsoft close Arkane Austin because of Redfall?
Microsoft’s public announcement did not prove that Redfall alone caused the closure. The company described the move as a broader reprioritization of titles and resources. The closure did end further development on Redfall.
Was Tango Gameworks permanently shut down?
Microsoft closed Tango Gameworks in May 2024, but Krafton later recruited development staff and established Tango Gameworks, Inc. as a subsidiary. The evidence does not indicate that every former employee transferred, and no sequel was formally confirmed in the cited material.
Was Roundhouse Games closed?
Not in the same sense as Arkane Austin, Tango Gameworks and Alpha Dog Games. Roundhouse was folded into ZeniMax Online Studios, with staff continuing in support or development roles.
When did Mighty DOOM shut down?
Bethesda Support records list August 7, 2024, as the date on which Mighty DOOM’s servers shut down.
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Physical PlayStation 5 and Xbox Series X editions were announced, with a Limited Run Games partnership reported. Availability, seller status and regional stock should be verified before purchase.
The Bottom Line
Microsoft’s May 2024 Bethesda cuts closed Arkane Austin, Tango Gameworks and Alpha Dog Games, while Roundhouse moved into ZeniMax Online Studios. Redfall development ended, Mighty DOOM’s servers later shut down, and Tango’s closure sparked backlash because of Hi-Fi Rush’s reputation. Krafton’s later recruitment of Tango staff and acquisition of the Hi-Fi Rush IP preserved part of that team and its work, but it did not reverse Microsoft’s closure or confirm a sequel.
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