Adding to the ever-increasing list ofgame developers losing their jobs,MicrosoftXbox has shuttered three studios it acquired with Activision Blizzard, according toIGN. The three shuttered development studios in question are Tango Gameworks (Hi-Fi Rush, The Evil Within, Ghostwire), Alpha Dog Games (Mighty Doom), and Arkane Austin (Prey, Redfall). Roundhouse Games is also being absorbed into ZeniMax Online Studios to work onThe Elder Scrolls Online.
Of the three development studios lost in these ruthless cuts from Microsoft, Alpha Dog Games is the least-known, particularly as a mobile game developer. The Mighty Doom mobile spinoff developed by Alpha Dog may not be a high-octane FPS likeDoom Eternal, but it was at least a perfectly serviceable top-down shooter with Doom characters.
The better-known studios being closed this round are Arkane and Tango Gameworks. While Arkane Austin’s latest release ofRedfallnotoriously underperformed (and it seemsthe devs didn’t even want to make thatgame), their past work on highly-successful titles such asPreyplaces them in the upper echelon in RPG developers. Enjoyers of “immersive sim” game design everywhere will be disheartened by this news, though the main Arkane Lyon studio in France seems safe (for now).
Of the three developers closed, Tango Gameworks' closing seems to be receiving the most backlash. As Microsoft’s only Japanese studio, Tango still managed to put out a number of successful titles, withHi-Fi Rushbeing considered by many to be the best Xbox exclusive of the past generation. The rhythm action hybrid not only won several awards, but Xbox Games Marketing VP Aaron Greenberg claimed Xbox “couldn’t be happier with what the team at Tango Gameworks delivered.”
Hi-Fi RUSH was a break out 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.June 13, 2025
Whatever brownie points that Xbox was hoping to earn by “reaffirming commitment to physical media” is quickly being replaced with backlash across the gaming sphere. When a truly unique title likeHi-Fi Rushcan be considered “a break out hit” by the higher-ups who then choose to shutter the entire studio within a year of making the comment, it seems clear to gamers and developers alike that the AAA gaming industry is a black hole that sucks in talent and spits out gratuitous layoffs for marginal increases in executive salaries and shareholder profits.
Microsoft’s justification for these moves? Matt Booty claims, “We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on ourpriority games.”
That’s right: this isn’t because Tango, Arkane Austin, or Alpha Dog Games have underperformed. It is literally just Microsoft wanting to make slightly more money with “safer” bets — at least, before we consider that the latestHalogame,Starfield,Fallout 76, and several other major MS projects all launched with (and many still have) severe issues. It certainly seems that AAA flop after AAA flop should be the issue to address, rather than actually-successful games likeHi-Fi Rush.
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What’s the point ofconsolidating all this industry talentif you’re still going to fire them after they make great games that perform above expectations? At least we have a lovely Tweet from Blizzard presidentMike Ybarrareminding us that throwing away the livelihood of three studios' worth of faithful employees “hurts him [Phil Spencer] as much as anyone else.”
Christopher Harper has been a successful freelance tech writer specializing in PC hardware and gaming since 2015, and ghostwrote for various B2B clients in High School before that. Outside of work, Christopher is best known to friends and rivals as an active competitive player in various eSports (particularly fighting games and arena shooters) and a purveyor of music ranging from Jimi Hendrix to Killer Mike to the Sonic Adventure 2 soundtrack.
