Microsoft Corp. (NASDAQ:MSFT) is shuttering several Bethesda studios and merging at least two — Roundhouse Games and ZeniMax Online Studios — sending shockwaves through the gaming industry.
What Happened: According to IGN, the closures affect Arkane Austin, Tango Gameworks, and Alpha Dog Studios and will likely cause the cancellation of promised updates for various games.
Alpha Dog makes Mighty Doom; Arkane Austin develops Redfall; and Tango Gameworks makes Evil Within.
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It’s not yet clear how many jobs will be lost.
In an email to staff, Matt Booty, head of Xbox Game Studios, explained that the cuts were part of a “reprioritization of titles and resources” to focus on high-impact projects within Bethesda’s portfolio.
“To double down on these franchises and invest to build new ones ...