In a significant move within the gaming industry, Microsoft's Xbox Game Studios announced the closure of four studios, all falling under the Bethesda/ZeniMax umbrella. 

The decision, attributed to a "reprioritisation of titles and resources," aims to focus on high-impact games within the Bethesda portfolio, according to an email obtained by IGN from Matt Booty, head of Xbox Game Studios.

Arkane Austin, known for its work on titles like "Prey" and the upcoming "Redfall," will be shuttered, with some team members transitioning to other Bethesda projects. Tango Gameworks, the studio behind "Hi-Fi Rush," and Alpha Dog Games, responsible for "Mighty Doom" on mobile, will also close their doors. 

Additionally, Roundhouse Games will merge into ZeniMax Online Studios, which focuses on "The Elder Scrolls Online."

The decision to close these studios comes as part of a broader strategy to streamline operations and concentrate resources on key franchises and new ventures. Booty's email underscores the importance of investing in established Bethesda properties while exploring opportunities for growth and innovation.

Arkane Austin's closure marks the end of development for "Redfall," with the game's servers remaining online for existing players, accompanied by make-good offers for those who purchased the Hero DLC. Similarly, Alpha Dog Games' "Mighty Doom" will sunset on August 7, with in-game purchases disabled.

Tango Gameworks, known for its unique and atmospheric titles, will cease operations following the closure announcement. However, "Hi-Fi Rush" will continue to be available on its current platforms.

Roundhouse Games, recognised for its contributions to recent game launches, will integrate into ZeniMax Online Studios. This move aims to enhance ongoing development efforts for "The Elder Scrolls Online," catering to its dedicated player base.

While acknowledging the impact on affected employees, Booty emphasised the importance of supporting departing colleagues through severance benefits and transition assistance. He also assures that these changes do not diminish the talent and creativity of the teams involved, attributing the decisions to the evolving dynamics of the gaming industry.

Looking ahead, Bethesda remains a cornerstone of Xbox's gaming portfolio, with an impressive lineup of upcoming titles, including "Starfield: Shattered Space," "Fallout 76: Skyline Valley," "Indiana Jones and The Great Circle," and updates for "The Elder Scrolls Online." The consolidation of resources aims to strengthen Bethesda's position within the gaming market and foster continued innovation across its diverse range of franchises.

As the gaming landscape continues to evolve, Microsoft remains committed to supporting its studios in building new IPs, exploring innovative concepts, and expanding upon existing franchises. The closure of these studios marks a strategic pivot aimed at optimising resources and maximising impact within the gaming ecosystem.