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Source: Christian Petersen / Getty / Xbox
The video game industry is in turmoil, and you wouldn’t think that’s the case because of the quality of games we have been getting. While we, as gamers, are enjoying a spoil of riches, developers continue to lose their jobs at a ridiculous clip.
Xbox is navigating choppy waters as it shifts its business model, putting some of its biggest exclusive titles on competitive consoles.
One of those titles was the beloved Hi-Fi Rush from Tango Gameworks, one of the many studios Xbox acquired when it acquired Bethesda Game Studios.
In a stunning turn of events, Tango Gameworks is one of four studios, including Arkane Austin, the developer of the massive flop Redfall, Alpha Dog Studios, and Roundhouse Games, which have been closed by Xbox, IGN reports.
Xbox is one of the many video game companies that have been unable to avoid the massive layoffs in the industry. The Microsoft company started the year by laying off almost 2,000 employees, which led to then-Blizzard president Mike Ybarra leaving.
Now comes the news of a new round of layoffs due to significant studio closures under the Bethesda umbrella.
Per GameRant:
Xbox has decided to shut down Arkane Austin, Alpha Dog Studios, and Tango Gameworks, with Roundhouse Games also effectively shutting down by being “absorbed” by ZeniMax Online Studios. In an email from Matt Booty obtained by IGN, it was explained that these shutdowns are about “prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games.” Arkane Austin worked on the 2017 Prey game and Redfall, Tango Gameworks was known for The Evil Within and the critically-acclaimed Hi-Fi Rush, Alpha Dog Studios was working on the Mighty Doom mobile game, and Roundhouse Games was primarily serving a support role at the time of its closure.
Arkane Austin’s demise could directly result from the disastrous launch of Redfall. Reviewers immediately deemed it a critical flop due to its broken state and abandoned it despite some quality-of-life improvements.
In a statement on X, formerly Twitter, Arkane Studios confirmed the Austin studio’s closure, telling gamers who bought the Hero Pass of the premium Bite Back edition or Bite Back upgrade will be eligible to receive the value of the upgrade.
Arkane says Redfall serves will remain online, but there will be no further updates.

Tango Gamework’s closure is the biggest surprise due to Hi-Fi Rush’s success following its surprise drop on the Xbox Game Pass and, most recently, its newfound popularity on the PlayStation 5 console.
What a spooky time to be a developer in the video game industry.
You can see reactions to the sad news in the gallery below.

1. No lies detected

2. This is also true

3. We’re old enough to remember the push for Xbox to gobble up more studios.

8. Cold world