On May 7, 2024, Xbox announced that Arkane Austin, Tango Gameworks and Alpha Dog Games would close, while Roundhouse Games staff would join ZeniMax Online Studios. The news prompted anger and shock among fans and industry observers, but Xbox’s announcement covered different outcomes for each team and game—not one blanket shutdown. Tango’s later acquisition by Krafton also changed what happened after the original announcement.
What Xbox announced on May 7, 2024
Matt Booty, head of Xbox Game Studios, told staff that three studios would close and a fourth team would be integrated into another studio. The distinction matters: Roundhouse Games was not announced as a closure.
| Team | Announced outcome | Game or service impact announced at the time |
|---|---|---|
| Arkane Austin | To close; some team members would move to other Bethesda projects. | Redfall development would end after its previous update. Xbox said the game and its servers would remain online, and said Hero DLC purchasers would receive make-good offers. |
| Tango Gameworks | To close. | Hi-Fi Rush would remain available on its existing platforms, Xbox said. |
| Alpha Dog Games | To close. | Mighty Doom was scheduled to sunset on August 7, 2024. |
| Roundhouse Games | Staff would join ZeniMax Online Studios. | No separate game or service change was specified in the announcement. |
These details come from Booty’s staff memo and contemporaneous coverage (The Verge, May 7, 2024; Game Developer, May 7, 2024). They describe what Xbox said at the time, not verified service or storefront status today.
Why did Xbox shut down Arkane Austin and Tango Gameworks?
Xbox’s stated rationale was that it wanted to prioritize high-impact titles and invest further in Bethesda’s larger franchises and fictional worlds. Booty described the changes as “grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds” (Booty’s memo, reproduced by The Verge).
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Xbox president Sarah Bond later described the announcement as part of a commitment to keep the business healthy over the long term. Asked about Tango, she said studio decisions involve “a whole variety of factors” and that there is “no one-size-fits-all” answer for each game or studio (Bloomberg, May 10, 2024).
Those are the company’s explanations, not proof of a specific financial cause for each closure. The available statements do not establish why each individual team was selected or give a verified total of jobs lost. Some Arkane Austin employees were expected to transfer to other Bethesda projects, so it would also be inaccurate to treat every affected employee as having the same outcome.
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How the closures fit into Xbox’s Bethesda organization
Microsoft completed its acquisition of ZeniMax Media, Bethesda’s parent company, on March 9, 2021. Its 2022 fact sheet listed eight game development studios in the acquired group (Microsoft, March 9, 2022). The May 2024 announcement was therefore a change to studios within the Bethesda/ZeniMax group after its integration into Xbox, not the closure of Xbox’s entire Bethesda operation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to Tango Gameworks after the announcement?
The May 2024 announcement was not Tango’s final chapter. In August 2024, Krafton announced that it had acquired Tango Gameworks and the rights to Hi-Fi Rush (Krafton, August 2024). This later development should be kept separate from Xbox’s original decision: the studio was announced for closure in May, and Krafton’s acquisition was reported afterward.
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What the announcement did—and did not—establish
- Xbox announced three closures—Arkane Austin, Alpha Dog Games and Tango Gameworks—and an integration for Roundhouse Games.
- It announced an end to Redfall development, a planned Mighty Doom sunset, and continued availability of Hi-Fi Rush on its existing platforms at that time.
- The announcement did not establish a combined job-loss figure. Some Arkane Austin staff were expected to transfer.
- The May 2024 statements do not verify current server status for Redfall or current storefront availability for the named games.
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