Microsoft announced on May 7, 2024, that Arkane Austin and Tango Gameworks would close, alongside Alpha Dog Studios. The headline needs a later update: Tango closed in June 2024 and was acquired by Krafton in August, while the available information does not establish that Arkane Austin reopened.
What Microsoft announced in May 2024
In a staff message on May 7, Microsoft Gaming president of game content and studios Matt Booty said Arkane Austin, Tango Gameworks, and Alpha Dog Studios would close. Roundhouse Games, another ZeniMax studio, would be incorporated into ZeniMax Online Studios, and some Arkane Austin staff were expected to move to other Bethesda teams. Gematsu reproduced Booty’s message and the announcement’s immediate consequences.
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Arkane Austin was associated with Prey and Redfall; Tango Gameworks made The Evil Within, Ghostwire: Tokyo, and Hi-Fi Rush. Engadget and FOX 7 Austin identify these connections.
Why did Microsoft close the studios?
Microsoft publicly described the changes as a shift toward high-impact titles and further investment in Bethesda’s portfolio. Booty wrote: “These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.” He also said, “To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success.”
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Booty added that the closures were “not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things.” The full message was republished by Gematsu.
On May 10, Xbox president Sarah Bond described the decision as an outcome of Xbox’s commitment to the business’s long-term health, in an interview with Bloomberg’s Dina Bass. Game Informer reported her comments. These public statements explain Microsoft’s stated rationale, but do not reveal the full internal financial or performance analysis behind either studio’s closure.
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What happened to Redfall and Hi-Fi Rush?
Redfall
Microsoft said development on Redfall would end. At the time of the announcement, it said the game and its servers would remain online and that eligible purchasers of the Hero DLC would receive make-good offers. Those were plans stated in May 2024; they do not, by themselves, verify the game’s current service status.
Hi-Fi Rush
Microsoft said Hi-Fi Rush would remain available on the platforms where it was already sold. That was an announcement-time commitment, not a current platform-by-platform availability check. The statement does not establish availability on every platform or the status of physical editions.
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What happened to Tango Gameworks afterward?
Tango officially closed in June 2024. In August 2024, Krafton acquired the studio, according to Le Monde’s report. The acquisition means Tango’s later history differs from the initial closure announcement: it was subsequently acquired by Krafton. The available information does not establish that Arkane Austin reopened.
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