Austin, Texas – The video game industry in Austin, Texas, was rattled by the sudden closure of several prominent game studios, including Arkane Austin and Tango Gameworks, on May 7, 2024. Both studios, known for their work on games like Redfall and Hi-Fi Rush, were part of Microsoft’s umbrella under Bethesda parent company ZeniMax. The announcement of the closures was delivered to staff via email by Matt Booy, Head of Xbox Game Studios, citing a “reprioritization of titles and resources” as the reason behind the decision.
The news of the closures sparked a wave of shock and disappointment among developers and fans alike, with many taking to social media to express their dismay. Arkane Lyon director Dinga Bakaba voiced his concerns on Twitter, emphasizing the importance of supporting artists and entertainers in the gaming industry. The closures also affected mobile game developer Alpha Dog Games, although the exact number of jobs lost across the three studios remains unclear.
Industry professionals, including Anthony Panecasio from Ubisoft Toronto, lamented the closure of Arkane Austin and Tango Gameworks, highlighting the potential of the studios’ innovative projects. Sebastien Mitton of Arkane Lyon described the closures as a “bad wake-up call,” expressing solidarity with the affected teams in Texas, Canada, and Japan. Former PlayStation executive Adam Boyes refrained from direct comments on the closures but noted Microsoft’s recent financial success in a tweet.
The closures have reignited discussions on the impact of acquisitions in the gaming industry, with some pointing to past promises made by higher-ups to avoid repeating mistakes. Developers have offered support and job opportunities to those affected by the closures, showcasing a sense of community within the industry. Fans of the affected studios have also voiced their disappointment, reflecting on the potential of the unreleased projects now left in limbo.
Overall, the closures of Arkane Austin and Tango Gameworks mark a significant moment in the evolving landscape of the gaming industry. As the industry continues to navigate the repercussions of corporate decisions, the resilience and adaptability of developers and studios remain a focal point in shaping its future. The aftermath of these closures serves as a stark reminder of the challenges faced by creatives in an ever-changing and sometimes unforgiving industry.