Following a series of studio closures, Xbox and Bethesda leadership convened for a town hall meeting with employees to discuss the strategic decision. They highlighted the need to streamline operations and focus on fewer projects. On May 7, Xbox announced the closure of three studios—Tango Gameworks, Arkane Austin, and Alpha Dog Games—while also integrating Roundhouse Studios into the team behind Elder Scrolls Online. In the aftermath of these closures, Xbox President Matt Booty and Zenimax head Jill Braff held a comprehensive meeting with staff to provide insight into the decisions made.
According to Bloomberg’s report, during the meeting, Booty commended Hi-Fi Rush but refrained from delving into specific reasons for the closure of the studio responsible for the colorful action game.
In a broader discussion about the closures, Booty likened Xbox and Bethesda’s studios’ situation to spreading peanut butter too thin on bread, emphasizing that team leaders felt understaffed. The rationale behind the closures was to consolidate resources within the company. Booty clarified that Arkane Austin’s closure wasn’t linked to Redfall’s reception among fans and critics.
Reportedly, both Tango and Arkane Austin had proposed future projects, including a potential sequel to Hi-Fi Rush and perhaps a new Dishonored or similar single-player immersive game. However, these projects are unlikely to materialize.
Reportedly, Braff expressed her optimism that the closure of certain studios would enable Bethesda/Zenimax to concentrate on fewer projects in the future.
“It’s challenging to manage nine studios spread across the globe with a limited central team while continuously adding more tasks to our plate,” she allegedly stated, as per a recording reviewed by Bloomberg. “I believe we were on the verge of collapse.”
The recent closures of studios under Xbox and Bethesda’s umbrella highlight the challenges of managing numerous projects across a vast network of studios. While the decisions may have come as a surprise to many, the leadership emphasized the need to streamline operations and focus resources on a more manageable number of projects.
