Microsoft Announces Closure of Redfall and Hi-Fi Rush Developer Studios

Microsoft has made the difficult decision to shut down several game developer studios including the creators of Redfall and Hi-Fi Rush. The affected studios are Arkane Austin, Tango Gameworks, Alpha Dog Studios, and Roundhouse Games.

According to reports, the closure of these studios comes after a string of underwhelming releases and poor performance of games like Redfall, a live co-op multiplayer title that failed to meet expectations.

Arkane Austin, the studio behind Redfall, faced significant challenges during the game’s development, leading to multiple retooling efforts and ultimately disappointing reviews.

Tango Gameworks, known for the critically acclaimed Hi-Fi Rush, shocked many in the industry with its closure. The departure of CEO Shinji Mikami in early 2023 may have played a role in the studio’s shutdown.

Alpha Dog Studios, the developer of the Wrathborne ARPG, and Roundhouse Games, a Bethesda Game Studios offshoot, were also affected by Microsoft’s decision to streamline its gaming portfolio.

While some employees from the affected studios will be offered positions elsewhere within Xbox Game Studios, the overall impact of these closures is significant.

Microsoft’s Xbox Game Pass strategy and the performance of titles like Redfall and Hi-Fi Rush have come under scrutiny, with analysts questioning the return on investment for these projects.

The closures highlight the challenges faced by game developers in the constantly evolving industry, where success is not guaranteed even for well-established studios.