Microsoft’s Xbox Is Shutting Down Four Bethesda Studios

  • Xbox is shuttering Arkane Austin, maker of ‘Redfall’
  • Tango Gameworks, a Japanese studio, will also be closed

Microsoft Corp.’s Xbox gaming division will shut down four subsidiaries, including the game studio Arkane Austin, according to an email reviewed by Bloomberg.

Arkane Austin’s most recent game, Redfall, was one of Microsoft’s biggest flops last year. The company said it will end development on the game and “provide make-good offers” to players who prepurchased content that will never be released.