Microsoft comes under fire after announcing the closure of four video game studios

The ax has fallen on the Xbox (Microsoft). The console maker announced on Tuesday, May 7, that it would close several video game development studios, months after announcing it would lay off 1,900 people. Interested studios include Arkane Austin (Redfall), Tango Gameworks (Hi-Fi Rush), Alpha dogs (Mighty doom) and Roundhouse Games. According to IGN, the news was announced via email to the staff of Matt Booty, head of Xbox Game Studios. Reasons for such closures “Building on a focus on impactful games and continued investment in Bethesda’s best-selling titles and beloved worlds.” He wrote.

So Xbox is cutting staff at publisher Bethesda, which it acquired for $8.1 billion in 2021. A few weeks ago, the offices of Bethesda France, which was mainly responsible for communication and translation of games for the French market, closed. “We were fooled for several weeks with the promise of a trip to the Microsoft office.”reported an employee of this French premises to our colleagues at BFMTV at the end of April.

Relocation and departure of developers

According to the American publication The Verge, some studio employees affected by the sudden closure will be relocated, while other studios will close permanently. Arcane Austin, for example, “Will close its doors and some team members will join other studios to work on projects within Bethesda”, explains Matt Booty in an email. Latest game update Redfall will be the last because the group is finishing its development.

Moreover, the title Mighty doom, developed by Alpha Dog Games, will disappear from the markets on August 7th. Microsoft is also expected to move the team from Roundhouse Studios to ZeniMax Online Studios to work more closely on the multiplayer game. The Elder Scrolls Online. On the other hand, from Tango Gameworks: “No one on the team seems to want to join other Bethesda studios.”The Verge reports this.

“These changes do not reflect the creativity and skills of the talented people on these teams, nor the risks they took to try something new.”, says Matt Booty. At present, it is still difficult to estimate the number of developers Microsoft has fired, adding to the already numerous ones in the video game industry in recent months.

“No one will trust Xbox anymore”

The announcement of the closure of these studios did not fail to cause reactions throughout the video game industry. Even the most ardent defenders of Microsoft and its Xbox brand have made their disapproving posts on social network X. “Xbox is ready. How can I still trust Microsoft? – protests Jez Corden, editor-in-chief of the specialized site Windows Central. “This is not the Xbox brand I want to see. Now I don’t recognize her anymore. To all employees affected by this closure, I want to say that I am very sorry.” also condemned Xbox news influencer Klobrille, followed by 162,000 people on X (ex-Twitter).

Many internet users also dug up an old tweet from Xbox marketing manager Aaron Greenberg. On April 21, 2023, the manager congratulated commercial and critical indicatorsHi-Fi Rushdescribing the name of Tango Gameworks, one of the studios that is about to close, as “A powerful blow, for us and for the players”. “We are very pleased with what Tango Gameworks has done.”.

Influential journalist Washington Post, Jin Park also joked about the post. “One thing is for sure: no one will believe Xbox anymore when one of its representatives says that ‘Hellblade 2 (the next Xbox exclusive game, editor’s note) is a potential hit for us and for the players.'” he commented on his account with X.

Xbox in a difficult situation

This announcement is all the more criticized because it affects historical studios that are widely considered to be developing quality games. Tango Gameworksthe most popular of the soon-to-be-closed studios has made quite an impression Evil inside 1 and 2, Phantom Wire Tokyo and recent Hi-Fi Rushnominated five times for the Game Awards, the equivalent of the Oscars for video games, and a BAFTA Award winner from “best animation”.

Arkane Austin, for its part, has noticeably developed Productionreleased in 2017 and least successful Redfall which critics did not ignore in 2023. Arkane Austin was also the only American studio, Arkane Studios, headquartered in Lyon, to develop the franchise DISHONORED and game Death loop.

The closure of the new studio comes in a very sensitive context for Xbox, whose consoles have been struggling to sell. Fans of the company are already blaming it for the recent porting of many exclusive games to rival consoles (Playstation 5 and Nintendo Switch) and for the recent critical failures (Star field , Redfall…), the manufacturer has been conducting layoffs in all its branches for several months.

Dismissal of 1900 employees

A year after closing a $69 billion deal to acquire publisher Activision-Blizzard-King (Call of Duty, World of Warcraft, Candy Crush…), Microsoft announced in early January that it was laying off at least 1,900 employees, or 9% of its payroll, in its video games division. “We have set priorities and identified areas of redundancy. That’s why we made the painful decision to reduce our workforce. This was announced by Xbox chief Phil Spencer in an email sent to ABK employees.

In any case, the studio closures did not fail to provoke a reaction from Thomas Mahler, the creative director of Moon Game Studios behind the recent and highly acclaimed project. No peace for the wicked. “To all the Arkane Studio and Tango Gameworks employees who have lost their jobs: Moon Game Studios is still looking for passionate developers who would like to contribute to No Rest for the Wicked. Send me your resume.” Independent studios and major video game companies are already looking to attract talented developers left by Microsoft.