While he noted that companies often tend to make decisions that are disagreed upon by those working under these decisions, he was especially surprised at the closure of Arkane Austin, since it had worked on critically-acclaimed titles like Dishonored alongside Arkane Lyon, as well as Prey.

“Every company makes the decisions they make for the reason they make them,” Smith said. “I don’t agree with them often, but the main shock there was this studio made Dishonored, along with the Lyon studio, and then they made Prey. Then we were working on Redfall during the pandemic and everything else. The industry [was] exploring games-as-a-service games. It is what it is. Creative efforts are unpredictable.”

As for the game that likely played a major role in the studio’s closure—Redfall—Smith spoke about being in a privileged position that has allowed him to have a long and storied career in the gaming industry. He also took personal responsibility for some of the issues that Arkane Austin faced during the development of Redfall. When it comes to his own privilege, he also spoke about how the industry has been losing many veterans that have decided to move on from gaming, with resumes becoming shorter and shorter. Arkane Austin itself, he noted, had team members that had just kicked off their game industry careers.

“I’m that rare person who has no complaints, but that’s a little bit of survivorship bias because things have worked out for me,” he said. “Even when they haven’t, I can look on a long track now and be like ‘Yes, there was a low point here, but look at this high point over here. This is incredible.’ If you have that luxury to look back on a bunch of highs and lows, it contextualizes things.”

The closure of Arkane Austin, as well as other studios under the Xbox Game Studios banner including Tango Gameworks, came as quite a surprise when it happened back in May 2024. Microsoft Gaming CEO Phil Spencer had referred to the closure of these studios as “hard decisions” that were made for the sake of “sustainable business”.

“In the end, I’ve said over and over, I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make,” he said back in June 2024. “We will continue to go forward. We will continue to invest in what we’re trying to go do in Xbox and build the best business we can, which ensures we can continue to do shows like the one we just did.”

While some pointed at the failure of Redfall as the reason for the latter’s closure, former Arkane president and founder Raphael Colantino still feels it was “not a good decision.”

“I think if you look a little bit, it’s obvious that Arkane Austin was a very special group that made some cool things and could pull it off again. I think it was a decision that came down to, ‘We need to cut something.’ Was it to please the investors, the stock market? They’re playing a different game,” said Colantino to PC Gamer.

Having left Arkane in 2017 and established WolfEye Studios, which released Weird West in 2022 (and is seemingly working on a new sci-fi RPG), Colantino says it’s “hard to know” why Microsoft shut down the studio. “The rules that they play, we might not understand them. It’s a different thing. It’s hard to know why they did what they did. The only thing that I stand by is saying that the specific choice of killing Arkane Austin was not a good decision.”

He also feels that recreating the studio’s magic will be impossible. “Recreating a very special group like that is, I would dare to say, impossible. It takes forever. When you have that magic of Harvey [Smith] and Ricardo [Bare] etc, that all come together, it’s a specific moment in time and space that just worked out this way, that took forever to reach. Those people together can really make magic.

“It’s not like, ‘Doesn’t matter, we’ll just rehire.’ No, try it. That’s what big groups do all the time. They try to just hire massively and overpay people to create those magic groups. It doesn’t work like this. So, to me, that was stupid. But what do I know?”

Though Arkane Austin is gone, Tango Gameworks was saved by Krafton, which acquired it and the Hi-Fi Rush IP from Microsoft. The publisher has since hyped Hi-Fi Rush 2 as somewhat of an open-world experience with more “dynamic” environments. Work paused on the sequel due to Tango’s closure, but it will resume “soon.” Stay tuned for updates in the meantime.

Revealed in June 2021 for Xbox Series X/S and PC, it’s set in the titular town where vampires have taken over and blotted out the sun. While Arkane Austin mostly cut its teeth on immersive sim titles, its last being 2017’s Prey, this was open-world, focused on gunplay and offering unique kits for each character.

Updates were sparse until Microsoft announced in May 2022 that Redfall and Starfield were delayed to the first half of 2023. As its release year rolled around, Redfall started generating a bit of concern. Campaign co-op progress tied to the host, a persistent online connection (even while playing solo) – the last straw was arguably no 60 FPS option available for Xbox Series X/S consoles at launch.

This was the least of its problems, though. Redfall finally launched to mixed reviews, with the public reception arguably even worse. Aside from all the technical issues and bugs, the title received criticism for its terrible user interface, lackluster story (presented in dull, barely animated cutscenes), horrible controls, and a barren world. On top of this, it had no co-op matchmaking – baffling, considering playing with others was a selling point.

Despite sales later being considered “minimal,” Arkane Austin wasn’t slated to be shut down (at least, not then). For its part, Arkane Austin implemented improvements to the best of its ability, with update 1.1 launching in June 2023 and increasing the spawn rate of enemies, upping the difficulty level while polishing their AI and fixing performance issues.

The update was more targeted towards improving the overall experience, from visibility when aiming down sights on sniper rifle scopes to ammo persisting between gameplay sessions when using ammo storage skills. It was also now possible to move while using melee attacks against enemies without interruption. New issues seemingly emerged, like infinite loading screens, Nest completion not counting towards the Rook’s meter, etc.

The next update wouldn’t be until October, but it added the long-awaited 60 FPS Performance Mode on Xbox Series X/S. Aim assist and dead zone tuning were improved. addressing one of the more underrated complaints with the horrendous aiming and lack of options to tweak it. Performance on PC also saw multiple improvements to accommodate a wider range of configurations.

While it didn’t offer too much by way of new missions, loot or enemy types, you could now stealth takedown Cultists and Bellwether enemies. Missions encounters saw balance changes, and the open world now had more enemies with some unique encounters to discover. Quality-of-life changes, like surfaces denoted as interactable for vaulting and mantling, and more consistency to compass markers and objectives that require searching areas, were also implemented.

The next update arrived in November and added a new Unrivaled Sniper Rifle in Basilisk. Its unique perk is the first bullet in a full magazine possessing UV power, thus petrifying Vampires if it hits. Not ideal against humans or enemies immune to Petrification, but it was a decent addition to the loot pool.

Otherwise, there were rebalances to enemies. You would no longer encounter Shrouds, Anglers and Siphons until completing some missions or reaching a certain level. However, enemies overall became more challenging, whether it’s Watchers reacting faster to players within its line of sight, the Siphon being more resistant to fire, or Soulless enemies dealing more damage up close. Human enemies were also buffed – they could finally climb awnings. Truly wondrous.

While Arkane Austin didn’t have any information on the two new heroes available with the Bite Back Edition’s Hero Pass, it did promise more details in 2024. Despite its rough launch year, there was hope.

Of course, its first anniversary came and went with still no details, not even a celebratory tweet. Instead, on May 7th, Microsoft shockingly announced that Hi-Fi Rush developer Tango Gameworks, Alpha Dog Studios of Mighty Doom fame and Arkane Austin were shutting down. Roundhouse Studios, which supported Redfall’s development, would be rolled into ZeniMax Online Studios to work on The Elder Scrolls Online.

The announcement came out of left field for Arkane since it was still working on its new heroes and an update to add offline mode. Both were seemingly scrapped, with servers remaining online, and those who purchased the Bite Back Edition or its premium upgrade were eligible to receive some credit back.

However, Arkane Austin later confirmed that the update would launch and be the game’s last before the studio closed. It arrived on May 30th and offered a small but substantial list of new features. A new reputation system, Community Standing, had been added and increased based on unlocking Safehouses, helping civilians and killing Underbosses.

This wasn’t a simple bar to fill, though. Community Standing had a dedicated skill tree with six ranks and 39 rewards. You could make it so that human enemies dropped more ammo on kill, Grave Locks appeared on your map and compass (making them easier to find), and unlocked Safehouses provided friendly turrets. Decreased damage from the Rook’s lightning strikes, improved rewards from Anglers, Shrouds and Siphons, more frequent Unrivaled Items and even a special cloak that would activate if your health fell to critical levels were also available to unlock.

There were also new Elder Nests whose objective involved slaying powerful vampires to receive temporary buffs like regenerating ammo on holstered weapons or getting healed by UV light. Players could now play offline, continuing their campaign if disconnected from the internet, and pause – yes, pause – while playing solo. Though it didn’t provide patch notes, Arkane Austin also touted, “New enemy encounters in Redfall Commons, continued AI improvements, Story Mode difficulty, and a new Unrivaled Weapon.” Alas, it was too little, too late.

Even with these updates and the studio officially shuttered, Redfall maintains a “Mostly Negative” rating on Steam, with only 37 percent positive reviews. Sift through the few positive ones (with 81 percent of the 44 recent reviews being positive), and there’s some praise for the new Community Standing system and offline play. Nevertheless, those who enjoyed the game admit that you should pick it up at a heavy discount, and even then, it’s just fine. In the end, the redemption arc was cut short.

Like many live service titles, Redfall had its share of alleged development troubles. Nevertheless, the closure of Arkane Austin is bittersweet, both for the employees who tried to make the game a success and those who valued its previous single-player efforts. The fact that a single-player focus immersive sim, potentially a new Dishonored, was reportedly pitched before the studio’s closure makes you wonder what could have been.

Arkane Lyon remains, and it’s somewhat poetic that its next project, Marvel’s Blade, is yet another game about slaying vampires. The more things change, the more they remain the same, but hopefully, the outcome ends up more in the studio’s favor.

Note: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, GamingBolt as an organization.

The refunds are reportedly going out in waves and applied to both Xbox and Steam players. A quick peek at the unofficial subreddit corroborates this, but interestingly, one user even received a refund for the physical Bite Back Edition after speaking to Bethesda Customer Support.

Redfall is available for Xbox Series X/S and PC. It launched to underwhelming reviews (check out ours here), and Microsoft later confirmed it generated “minimal sales.”

Despite its closure, Arkane Austin released one final update for the co-op shooter, adding an offline mode, pausing in solo play, and Elder Nests. There’s also a new Unrivaled weapon, a Community Standing tree for unlocking new skills by defeating an Underboss, unlocking Safehouses and more. Head here for more details. Servers will remain online, but stay tuned for updates on that front.

“The closure of any team is hard obviously on the individuals there, hard on the team,” Spencer said. “I haven’t been talking publicly about this, because right now is the time for us to focus on the team and the individuals. It’s obviously a decision that’s very hard on them, and I want to make sure through severance and other things that we’re doing the right thing for the individuals on the team. It’s not about my PR, it’s not about Xbox PR. It’s about those teams.”

Spencer went on to talk about needing to make decisions like this in order to run a sustainable business. While studios like Arkane Austin and Tango Gameworks have now been shut down, Microsoft still has plans to grow its business moving forward.

“In the end, I’ve said over and over, I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make,” he continued. “We will continue to go forward. We will continue to invest in what we’re trying to go do in Xbox and build the best business we can, which ensures we can continue to do shows like the one we just did.”

Microsoft announced the closure of a number of studios back in May. The list of studios affected included Roundhouse Studios, Alpha Dog Studios, Arkane Austin, and Tango Gameworks. When it made the announcement, head of content and studios at Xbox, Matt Booty, stated that the closures were made due to a “reprioritization of titles and resources”.

Interestingly, several fans of games made by these studios took to the game’s Steam store listings to review bomb the titles with positive reviews, encouraging more players to play games like The Evil Within, Hi-Fi Rush, and Ghostwire: Tokyo.

Underpowered Xbox Series S

Releasing a more economical variant of its current current-gen console line-up seemed like a shrewd consumer-first move by Microsoft in 2020. After all, for a significant price drop you could still enjoy some of the Xbox Series X’s marquee features on Series S, such as Xbox Velocity Architecture, DirectX Raytracing, and Quick Resume. It’s those downgrades that are starting to stifle the Series S’s place in market now we’re in 2024 – less processing power and lower max resolution the principal features that’re starting to become a headache for developers and players alike.

For starters, several quality-of-life features have been added to the game with its latest update. For instance, Redfall can now finally be played offline, while when playing solo, you will now also have the option to pause the game. Beyond that, there’s also a new Story Mode difficulty, new enemy encounters and weapons, and DLSS3 support.

Additionally, a couple of major new gameplay features have also been introduced. There’s a revamped Neighborhoods system, which comes with a new Safehouse skill tree that you are able to progress through, which, in turn, is done by filling up the new Community Standing bar by unlocking Safehouses, completing Safehouse missions, rescuing civilians, or killing an Underboss. The new tree has six ranks in total, each bringing with it a number of unique unlockable buffs and boosts.

Finally, there’s also a revamped Nests system in place, which introduces the new Elder Nests, which are described as “new Boss-focused Nests will challenge you to destroy dangerously modified special Vampires”. Clearing these Nests will net you and your teammates with temporary buffs called Heart Shards, which will provide a variety of unique benefits.

Of course, though Arkane Austin isn’t going to be able to g through with its reportedly significant post-launch DLC plans for the maligned game, it does look like the studio is at least getting to push a significant final update before signing off for good.

Redfall is available on Xbox Series X/S and PC.

Game Update 4 is available now and features Offline Mode, ReVamped Neighborhood and Nest systems, Single Player Pausing, and more.

Learn more about the update here: https://t.co/h6M9lCfVwS pic.twitter.com/u9vuvcCI9x

— Redfall (@playRedfall) May 30, 2024

A release date wasn’t provided, but the developer said it would share additional details “soon.” IGN’s report claimed the update would be out in May, but given the sudden nature of its closing, it could have been pushed forward. Time will tell, so stay tuned.

Unfortunately, Hero Pass owners aren’t likely to receive the two promised DLC characters, rumored to be targeting Halloween. Arkane Studios is providing credit back for Bite Back Edition owners (which includes the Hero Pass), meaning it’s even less likely in the future.

Redfall is available for Xbox Series X/S and PC, alongside Game Pass, with servers remaining available for now. Check out our review.

Thank you for all your supportive messages.

We are working to release our final update, Game Update 4, that brings revamped Neighborhood and Nest systems, Single Player Pausing, Offline Mode, and more.

We’ll provide additional details soon. Thank you all.

— Redfall (@playRedfall) May 17, 2024

Sure, it had been acquiring development studios left and right, but an entire publisher? It was a paradigm shift, regardless of how successful Bethesda’s titles had been over the years since a major player in the console wars could “buy” their way to exclusives.

About three and a half years later, four studios under Bethesda are no more. They include Arkane Austin, known for the controversial Redfall but also for the more positively received Prey; Tango Gameworks, lauded for Hi-Fi Rush and rumored to be developing it for the Nintendo Switch 2; Roundhouse Studios, which assisted on Redfall and is now being absorbed into ZeniMax Online Studios to work on The Elder Scrolls 6; and Alpha Dog Studios, which released the mobile game, Mighty Doom.

Mighty Doom will be sunset on August 7th, while Redfall development has ceased, despite the latter not receiving two DLC characters from its Hero Pass more than a year after release. The reason, per an internal email from Xbox Game Studios head Matt Booty, is the “reprioritization of titles and resources.” “These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds, which you have nurtured over many decades.”

IGN reports that Arkane Austin was working on a “big update” and delivering the characters by Halloween before the announcement happened. Some members will be working on other Bethesda projects even though the studio is no more. However, perhaps the more concerning issue is that no one – not Microsoft nor the studios – has confirmed how many employees have been laid off, especially following the 1900 jobs cut last January.

The reaction from the industry is understandably livid. Even though fans were “assured” that Arkane Lyon is still alive and working on its project (presumably referring to Marvel’s Blade), director Dinga Bakaba has tweeted about how “absolutely terrible” this all is. “To any executive reading this, a friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

“Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations/blind spots, don’t make our work environments Darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we have seen it before.”

Moon Studios founder Thomas Mahler, who recently launched No Rest for the Wicked in early access, also said, “To everyone who’s been pestering me for years about why we didn’t allow Moon Studios to get acquired by a big publisher…That’s why. I’ve lived through the 90s and saw what happened when smaller studios got acquired by EA. Never again.”

You could justify these closures in several ways. Redfall was a failure, its player base was in the gutter. Reports of its development also weren’t great, with staff citing an unclear direction and how the project could have benefited from cancellation or a reboot after Microsoft’s acquisition. However, plenty of fingers were pointed at Microsoft as well. Why didn’t it support Arkane Austin at the time? Microsoft Gaming CEO Phil Spencer would later reveal that it had supported Starfield better, but that was more for reassuring fans than confirming any shift in philosophy.

Even if it didn’t want to continue pouring resources into the project, one has to ask: Why shutter the entire studio? Why not invest in existing IPs like Dishonored and Prey? Furthermore, what happened to Spencer assuring everyone there are no plans to shut down the studio? Perhaps the obvious response would be “Plans changed,” but it’s still a shame.

Then there’s the case of Tango Gameworks, which saw middling success with The Evil Within 2 and Ghostwire: Tokyo but struck gold with Hi-Fi Rush. Even if it was a Game Pass release, a new IP and shadow-dropping out of nowhere, Microsoft’s Aaron Greenberg said it was a “breakout hit for us and our players in all key measurements and expectations.

“We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.” Was that not enough to save the developer? Did that not represent any value for the future? Was the recent PS5 release not good enough or something?

Roundhouse Studios could be explained as working more closely with The Elder Scrolls team, which it’s been doing more of lately. Alpha Dog Studios’ closure may be due to Microsoft shifting away from mobile titles. However, the bigger picture of troubling leadership over the years is becoming harder to deny.

Titles like State of Decay 3, Perfect Dark, Fable, Everwild and even the third-party Contraband are nowhere to be seen, with some having reports of troubled development. Some projects like South of Midnight, OD (developed by Kojima Productions), Indiana Jones and the Great Circle, Starfield’s Shattered Space expansion, Clockwork Revolution and Stoic Studio’s Towerborne are moving ahead. However, the sheer lack of updates for many of its heavy hitters for years is becoming concerning. That too after many years of no exclusives, disappointing releases and cancellations before the company’s “new era’ of acquisitions.

Then, there’s the 31 percent drop in Xbox hardware sales for Microsoft’s Q3 2024 fiscal year, fueling further queries into how much longer the company will continue investing in the same, especially with its new multiplatform approach. Some could point to the fact that the company posted $61.9 billion in revenue and $21.9 billion in net income and how Xbox’s content and services revenue is up by 62 percent. Or how Game Pass has reached 34 million subscribers, and overall gaming revenue is up 51 percent.

However, much of the success of the gaming division is thanks to the recent acquisition of Activision Blizzard, the latter seeing a loss due to the operating costs of integrating into Microsoft. It’s also worth reiterating that despite the publisher contributing so much, it wasn’t safe from layoffs. Who knows where it could go in the following months? For that matter, who is to say that any project or developer is safe?

For years, public opinion has shifted on Microsoft’s acquisition strategy, whether it’s the lack of benefits for developers or the lack of oversight in managing them. At one point, one could have surmised that the company has nowhere to go but up in this regard, making changes and improving itself to live up to fans’ expectations and make good on the people creating its titles.

After this year’s layoffs, it showcased an alternative – cut costs and jobs, hype up future products, tout Game Pass subscribers and don’t look back. If all else fails, buy another publisher for billions of dollars and start afresh. Why not?

The question now isn’t what to look forward to from Xbox – it’s whether the brand and its developers will even look the same a year or two down the line, if they’re lucky to get that fair. But hey, at least there’s an Xbox Games Showcase on June 9th with the next Call of Duty to be revealed. Surely that means something, right?

Note: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, GamingBolt as an organization.

“This is absolutely terrible. Permission to be human: to any executive reading this, a friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

“Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations/blind spots, don’t make our work environments Darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we saw it before. For now, great teams are sunsetting before our eyes again, and it’s a f*****g gut stab.”

While he assured Arkane Lyon was safe, Bakaba asked, “Please be tactful and discerning about all this, and respect affected folks’ voice and leave it room to be heard. It’s their story to tell, their feelings to express.” He also called out any talk of an “immersive sim curse,” stating, “Please, let’s talk about the *real* challenges instead of rehashing irrational anxieties of the past.”

Arkane Austin’s closure followed the controversial release of Redfall, a co-op shooter that strayed far from the studio’s history of immersive sims. It received mixed reviews, and sales were “minimal,” though Microsoft claimed there were no plans to shut the studio down. Though its last update was in November 2023, the development team were reportedly working on new updates, with its two new DLC characters planned for this Halloween before the closure.

Refunds will be available for those who purchased the Hero Pass or upgraded to the Bite Back Edition, so stay tuned for further updates. As for Arkane Lyon, its next project is Marvel’s Blade, which Bakaba is directing. It’s reportedly targeting a launch in 2027.

This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

Don't throw us into gold fever gambits, don't use us as strawmen for miscalculations/blind spots, don't make our work environments darwinist jungles. You say we make you proud when we make a good game. Make us proud when times are tough. We know you can, we seen it before.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

For now, great teams are sunsetting before our eyes again, and it's a fucking gut stab. Lyon is safe, but please be tactful and discerning about all this, and respect affected folks' voice and leave it room to be heard, it's their story to tell, their feelings to express.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

Inside baseball, but if I read "immersive sim curse" from the community, especially from a fellow dev, I swear to God… Please, let's talk about the *real* challenges instead of rehashing irrational anxieties of the past.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

Even more inside baseball, but with a very, very wide range, as a wise and sorely missed man said:

"Please Stop."

— Dinga Bakaba 451 (@DBakaba) May 7, 2024