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

In an internal email obtained by IGN, Xbox Game Studios head Matt Booty said, “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.

“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success. This reprioritization of titles and resources means a few teams will be realigned to others, and some of our colleagues will be leaving us.”

Following its closure, some members from Arkane Austin will work with other Bethesda studios. Roundhouse Games will be folded into ZeniMax Online Studios to work on The Elder Scrolls Online. Alpha Dog Studios and Tango Gameworks will be closed outright, with Mighty Doom to be sunset on August 7th (with in-game purchases disabled).

Booty added, “With this consolidation of our Bethesda studio teams, so that we can invest more deeply in our portfolio of games and new IP, a small number of roles across select Bethesda publishing and corporate teams will also be eliminated.” Microsoft will provide its “full support to those who are impacted in today’s notifications and through their transitions, including severance benefits informed by local laws.”

He also noted that the closures are “not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things. I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”

Upcoming releases from Bethesda studios include MachineGames’ Indiana Jones and the Great Circle, Bethesda Game Studios’ Starfield: Shattered Space, The Elder Scrolls Online: Golden Road, Fallout 76’s Skyline Valley update and Marvel’s Blade from Arkane Lyon. id Software is rumored to be working on DOOM: Year Zero. Stay tuned for more updates, especially with the Xbox Games Showcase on June 9th.

pic.twitter.com/KhhqgR902g

— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024

Players interested in requesting a refund for purchased in-game currency can sign up here https://t.co/R7rL4LKsjk to receive details. pic.twitter.com/9g3kBoRGVw

— Alpha Dog Games (@AlphaDogGames) May 7, 2024

Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8

— Arkane Studios (@ArkaneStudios) May 7, 2024

As spotted on Twitter by @FaizShaikh7681, the LinkedIn profile of a developer at Roundhouse Studios suggests prior to the closure of Human Head Studios, which is what Roundhouse was before it was reformed, the development team was working on a team-based PvPvE third person shooter built on Unreal Engine 4 and based on “a major comic license.” The brief description of the game on the LinkedIn profile makes mention of emphasis on “player movement, weapons, status effects, game modes” and “AI for a variety of creatures in the world”.

Interestingly, the profile of another Roundhouse developer mentions that that unannounced game, which started development in 2019, is still in the works, with the studio currently seemingly employing over 50 developers.

There are, of course, a lot of questions worth asking here. With Human Head having been shuttered and reformed as Roundhouse Studios, it’s unknown whether the exact same project is in the works, especially given how vague the information in this particular instance is. If it is the same project, it remains to be seen how much it will have changed since coming under the Bethesda umbrella. Of course, if the project does still exist, many will be curious to know what major comic license it is based on.

Either way, we’ll keep an eye out for new details, so stay tuned for more updates.

'Roundhouse Studios' Formerly (Humam Head) From Bethesda Softworks Before Closure They were working on UE 4 Project.
– Online, Team based PvPvE 3rd Person Shooter based on MAJOR COMIC LICENSE.
– According to Senior Character Artist They Are Still Working on Unannounced Project. pic.twitter.com/GX2vtLittP

— Faizan Shaikh (@FaizShaikh7681) December 3, 2021

– So I Checked How Many people are working with studio.
– 39 Profile said Working at Roundhouse & 14 Employees Profile Said Working @ Human Head Studio so Atleast Total 53 Employees + Support from other Bethesda Teams.

— Faizan Shaikh (@FaizShaikh7681) December 3, 2021

Human Head Studios have been well acquainted with major issues in the past, but a month ago, the developer officially shut down, before reforming under Bethesda as Roundhouse Studios. It was a curious turn of events, because their shuttering happened just a couple days after the launch of their newest game, Rune 2.

Meanwhile, Ragnarok LLC, the publisher of Rune 2, said in a statement that it had had no knowledge that Human Head was about to shut down, and that their shuttering was as much of a surprise for them as it was for everyone else. They did, however, promise that they would continue to support Rune 2 even in the absence of Human Head.

Now, however, it looks like that’s not exactly going to plan. It seems there’s trouble between employees of the former Human Head Studios and Ragnarok LLC, with the latter filing a legal complaint against the former for withholding assets of Rune 2, which are required for the game’s continued support.

“As mentioned previously, we had no warning that our long term partner and friends in this project would abandon it during its most crucial moment, leaving our team at Ragnarok Game LLC to shoulder both the development and publishing burden of launch all on its own,” the publisher wrote in a statement.

“Since Human Head’s sudden closure, announcement, and discovering the active concealment of their acquisition, we have repeatedly requested access to the final launch build source code and RUNE II game assets,” they added. “This is so we can continue to support, update, and execute future DLC for our community.

“As part of the publishing agreement on RUNE II, Ragnarok Game LLC has paid for the development of these assets and is the rightful owner of them. After repeated refusals by Human Head to produce these assets, we’ve had no choice but to file a legal complaint in order to obtain the RUNE II game assets. We have exhausted all possible options before getting to this point.  This is not the step we wanted to take, but it is necessary in order to fulfill our promises to our community.”

In their lawsuit, Ragnarok have demanded heavy damages, monetary and otherwise, including a $100 million compensation, the restitution of all money transacted by Ragnarok to Human Head, return of the game’s property, and more. Stay tuned to GamingBolt for more updates as this story develops.

Yesterday, Rune 2 developer Human Head Studios revealed that it had closed its doors. The announcement was shocking but even more shocking was the news that the entire studio was reforming as Roundhouse Studios under Bethesda. This has left current players asking about the future of Rune 2 which is currently available on the Epic Games Store for PC.

Publisher Ragnarok LLC allayed some of those fears on its forums, first announcing that the game’s demand “exceeded our expectations.” It then confirmed that support would continue for Rune 2. “Yesterday, we successfully launched RUNE II onto the Epic Games Store and the game’s demand has exceeded our expectations. We’re very thankful that everyone wants to play our game. First and foremost – we love this game and we will continue to support Rune 2.”

Of course, the announcement of Human Head Studios closing down was “shocking news” to the company. “There are several entities working on Rune 2 – we found out about this news when you did. Human Head had a longstanding agreement with Rune 2 publisher, Ragnarok Game, LLC, to provide ongoing support for the game. We are working quickly to resolve any current technical issues while we build the team that will execute the exciting planned future of Rune 2’s post-launch content strategy. We appreciate your patience and understanding while we work through any launch issues.”

The publisher then confirmed that work would continue to bring Rune 2 to other PC platforms (most likely referring to its Steam release) next year. It’s also excited to showcase the “future” of Rune 2 content. Where that could lead and what plans the publisher has remains to be seen as well as how the former Human Head Studios developers will handle things. Stay tuned for more details in the meantime.

Human Head Studios, which recently released Rune 2, has shut down. In an odd twist however, the studio has reformed as Roundhouse Studios under Bethesda. The new studio will be working on “unannounced projects” in Madison, Wisconsin.

What makes this strange is that Human Head Studios was originally developing Prey 2 for Bethesda. The project was cancelled in 2014 (rumors that it was intentionally sabotaged were denied later by Bethesda’s Pete Hines) and rebooted as Prey under Arkane Studios. Creative director Chris Rhinehart stated that, “Sadly, we had to wind down the business of Human Head Studios and close its doors, which was particularly devastating due to the passion and creativity of the team we’d assembled.

“We reached out to our friends at Bethesda for help, and they saw that same creativity and passion in our team. With the formation of Roundhouse Studios, Bethesda offered every employee of Human Head a position at the new company. We are excited our team will remain together, pursuing the work we love, as part of a company we already know and admire.”

Bethesda senior VP of development Todd Vaughn said that, “While sorry to hear of their challenges as Human Head Studios, we were excited by the opportunity to bring under the Bethesda umbrella this talented, established development team. We are delighted that the entire staff will remain together and is now part of the Bethesda family.”

Could the studio return to work on the Prey franchise, perhaps incorporating its ideas into a new sequel (especially since Arkane Studios is busy with Deathloop)? What will become of Rune 2 in the meantime? Time will tell but this is just the latest in studio acquisitions for Bethesda. The publisher acquired mobile games developer Alpha Dog Games last month with the intention of developing games for iOS and Android.