Microsoft closing the Bethesda studios behind Redfall, Hi-Fi Rush, and more following “reprioritization of titles and resources”

Update: The closure of these studios has now been confirmed by Microsoft.

Original story: Microsoft is reportedly closing several Bethesda and ZeniMax studios, including Arkane Austin and Tango Gameworks.

Earlier today, May 7, IGN reported that Microsoft is closing down both Arkane Austin, who most recently made Redfall, and Tango Gameworks, known most recently for Hi-Fi Rush. Both studios operated under the Bethesda umbrella, and IGN reports that the cuts are limited to the parent company.

"Arkane Austin – This studio will close with some members of the team joining other studios to work on projects across Bethesda," Xbox Game Studios head Matt Booty reportedly says in an email to staff, as verified by IGN. "Arkane Austin has a history of making impactful and innovative games and it is a pedigree that everyone should be proud of. Redfall's previous update will be its last as we end all development on the game. The game and its servers will remain online for players to enjoy and we will provide make-good offers to players who purchased the Hero DLC."

"Tango Gameworks will also close. We are thankful for their contributions to Bethesda and players around the world. Hi-Fi Rush will continue to be available to players on the platforms it is today," Booty adds. The Xbox Game Studios head also reveals in the email that both Alpha Dog Studios and Roundhouse Games will also be closing.

The former developer was most recently responsible for Mighty Doom on mobile devices, and the mobile game will also be shutting down effective August 7. Roundhouse Games, meanwhile, will effectively be folded into Zenimax Online Studios and will continue working on The Elder Scrolls Online, as it has done over the past few years.