The recent news of Microsoft shutting down Hi-Fi Rush studio Tango and Prey’s Arkane Austin has sent shockwaves through the gaming industry. According to reports, these closures are part of a larger cost-cutting initiative that is still ongoing. This move has raised concerns about the future of other ZeniMax studios as well.
Sources familiar with the company’s plans have revealed that Xbox offered voluntary severance to producers, quality assurance testers, and other staff at ZeniMax. During a meeting with ZeniMax employees, Xbox president Matt Booty emphasized that the company’s studios were spread too thin and leaders across the division felt understaffed. This led to the recent closures of Tango, Arkane Austin, Mighty Dog, and Roundhouse.
The closure of Arkane Austin comes at a critical time when the studio was deep in the development of more content for the vampire live service Redfall. Additionally, they were looking towards creating a new immersive sim, possibly a new installment in the Dishonored series. Microsoft’s decision to shut down the studio has raised questions about the fate of these projects.
ZeniMax Studios were acquired by Microsoft in 2020 for $7.5 billion, marking one of the industry’s largest acquisitions. Following this acquisition, the recent cost-cutting measures have come under scrutiny. This move is seen as a response to the lack of growth in Game Pass subscriptions, which Xbox had been counting on.
According to analyst Mat Piscatella, Game Pass saw significant growth between late 2019 and early 2021 but has since plateaued. This has raised concerns about the sustainability of the Game Pass model. With sales of games and add-on content still preferred by US consumers, Xbox is reevaluating its gaming strategy and becoming less willing to take risks on new releases.
In a bizarre turn of events, someone nuked Phil Spencer’s Fallout 76 camp. At the time of writing, it is unclear if he has managed to rebuild it yet. This incident highlights the uncertainty and chaos that has ensued following Microsoft’s cost-cutting initiatives and the repercussions it has had on the gaming community.
Overall, Microsoft’s decision to shut down studios like Tango and Arkane Austin has sent shockwaves through the industry. The impact on ZeniMax studios and their projects is still unknown, but it is clear that these closures have raised concerns about the future of gaming under Microsoft’s leadership. As the fallout from these decisions continues to unfold, the gaming community awaits to see what the future holds for ZeniMax’s talented developers and their innovative projects.
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