In an email revealed by IGN, Microsoft is moving to consolidate its resources in the gaming industry by trimming down or abolishing several Bethesda studios.

“Today I’m sharing changes we are making to our Bethesda and ZeniMax teams. 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.”

Matt Booty, head of Xbox Game Studios, sent an email to employees that detailed Microsoft’s plans. The email is long-winded and is careful to treat all of the mentioned studios with respect, but the ultimate changes can be summarized thusly:

  • Arkane Austin, developer of widely disliked Redfall, will close, with some members being relocated to other projects.
  • Alpha Dog Studios will close.
  • Tango Gameworks, developer of Hi-Fi Rush, will close.
  • Roundhouse Games will merge with ZeniMax Online in developing ESO.

The changes signal a step in a more profitable direction for Microsoft-owned Bethesda studios, which clearly prefers to lean into the already successful titles the developer/publisher is known for.

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