Microsoft has announced through its Xbox arm that it is implementing closures and workforce cuts throughout its Bethesda portfolio of studios. Among those affected are Arkane Austin, Tango Gameworks, and Alpha Dog Studios, the studio behind the DOOM-based mobile shooter game Mighty DOOM.
The industry is still recovering from studio closures and project cancellations from the embattled Embracer Group, which finally ended the shutdowns in March. However, the shocks continue as Microsoft announced it is closing three studios while absorbing a fourth into ZeniMax Online Studios, which is preparing to launch the Gold Road chapter in The Elder Scrolls Online.
One of the studios affected is Alpha Dog Studios, the name behind Mighty DOOM, the adorable mobile adaptation of the DOOM survival horror first-person shooter. Alpha Dog had previously announced a tie-up with Bethesda Game Studios to bring a Vault-Tec Slayer skin into the game following the success of the Fallout live-action TV series on Prime Video.
As part of the closure, Microsoft will shut down the Mighty DOOM servers by August 7 and disable microtransactions immediately. Alpha Dog announced in a separate tweet that players who have already bought in-game credits can ask Bethesda for a refund.
According to Xbox’s Matt Booty, these cuts will allow Microsoft to further invest in building Bethesda’s portfolio and allocate more resources towards “high-impact titles.” Booty also said these closures came about after they “looked [ed] across the business to identify the opportunities that are best positioned for success.”
In other words, Microsoft wants to refocus its investment on existing titles and projects that are already viable and can generate solid revenues for the organization. Arkane’s Redfall had reportedly brought in only “minimal” sales, while Tango’s Hi-Fi Rush, despite winning awards and hitting 3 million players in March 2023, had performed below Microsoft’s expectations.
This decision does not impact Bethesda Game Studios, the studio behind Starfield, Fallout, and The Elder Scrolls. However, Roundhouse Games will be absorbed by ZeniMax Online Studios, and its staff will be put to work on The Elder Scrolls Online.
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