Amid the ongoing waves of layoffs and studio shutdowns in the gaming scene, a new Bloomberg report has shed new light on the behind-the-scenes happenings prior to the sudden closure of several now-former Bethesda studios, including Tango Gameworks and Arkane Austin.
Established game journalist Jason Schreier writes that both parties were in the process of pitching a sequel to the critically-acclaimed Hi-Fi Rush and a new Dishonored game before getting the axe. In particular, the latter had hoped to return to its roots following the widely-panned Redfall, and wanted to explore a new immersive sim “such as a new entry in the Dishonored series.”
Tango, meanwhile, was reportedly seeking to hire additional staff for the project to fill in the gap left behind by founder Shinji Mikami, who departed in 2023. Now that both studios have shuttered, these ideas are likely dead in the water, with Xbox yet to offer a clear justification for the shutdowns.
The reason — on paper, at least — is that that company’s leadership wanted to free up resources elsewhere, as it feel like ZeniMax’s studios were spread too thin like “peanut butter on bread”. Additionally, Tango’s requests for more manpower were untenable, with their new projects considered to be years away.
“It’s hard to support nine studios all across the world with a lean central team with an ever-growing plate of things to do,” said ZeniMax studios Jill Braff. “I think we were about to topple over”.
This mismanagement has resulted in unfair treatment for the affected parties, especially after Xbox showered Hi-Fi Rush and Tango Gameworks with praise and showed commitment to cultivate their talent pool.
“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,” said vice president of games marketing, Aaron Greenberg, on X/Twitter in 2023. Prior to releasing the action rhythm game, the studio was best known for working on The Evil Within series.
The cutbacks have sparked shock and furore throughout the games industry, which continues to be saddled with mass layouffs. Alongside Tango and Arkane Austin, Xbox also closed Alpha Dog Studios and Roundhouse Games. The nightmare is far from over — more cuts are said to be on the way for company employees.
Dinga Bakaba, who heads Arkane Lyon, of Dishonored fame, didn’t mince his words when he made his anger publicly known on social media. “Don’t throw us into gold fever gambits, don’t use us as strawmen for miscalculations/blind spots, don’t make our work environment darwinist jungles,” reads part of his callout. “You say we make you proud when we make a good game. Make up proud when times are tough.”
Arkane Austin is its sister studio, best known for their work on Prey. In the meantime, Xbox remains shrouded in uncertainty, with Game Pass subscriptions and console sales on the decline. Senua’s Saga: Hellblade 2 seems to be caught in the crossfire as well, having received little marketing despite releasing on 21 May.
Si Jia is a casual geek at heart – or as casual as someone with Sephiroth’s theme on her Spotify playlist can get. A fan of movies, games, and Japanese culture, Si Jia’s greatest weakness is the Steam Summer Sale. Or any Steam sale, really.
