NY, May 8, 2024 (Financeflashnews) – Microsoft has announced the closure of two gaming studios, Arkane Austin and Tango Gameworks, responsible for developing Redfall and Hi-Fi Rush, respectively. In addition to these two studios, Alpha Dog Studios and Roundhouse Games will also be dissolved.
Games canceled due to Microsoft studio closures:
- Redfall – first-person cooperative shooter from Arkane Austin
- Hi-Fi Rush – rhythm action game from Tango Gameworks
Closed studios:
- Arkane Austin
- Tango Gameworks
- Alpha Dog Studios
- Roundhouse Games
This strategic decision comes at a time when the gaming industry is facing various challenges. Xbox console sales declined in the last quarter, and Redfall, the highly anticipated first-person cooperative shooter from Arkane Austin, had a troubled launch.
Shift in strategy: Microsoft is focusing on “high-impact games,” also known as “blockbusters.”
According to Matt Booty, head of Xbox Game Studios, the company is focusing on Bethesda titles and prioritizing games with high commercial potential.
The cancellation of Redfall and the closure of studios also bring job losses. The exact number of affected employees is unknown, but some team members from Arkane Austin and Tango Gameworks will move to other studios within Microsoft.
This move by Microsoft has potentially far-reaching consequences for the gaming industry. The cancellation of Redfall may disappoint fans who were looking forward to the game, while also raising questions about the future of gaming studios under Microsoft’s umbrella.
Key economic points of interest:
- Microsoft’s strategy shift: Focusing on “high-impact games” may bring in more revenue, but it also carries the risk of narrowing the game portfolio and losing creativity.
- Impact on the gaming industry: The cancellation of Redfall and the closure of studios could impact game development and the availability of different game genres.
- Job losses: The studio closures will affect employment in the gaming industry and could lead to the migration of talented developers to other companies.
- Impact on investors: The future of the Xbox gaming platform and its game portfolio will be crucial to maintaining investor interest and confidence in Microsoft’s gaming division.
It remains to be seen what the long-term impact of this strategic decision by Microsoft will be on the gaming industry and on the company itself.
