Xbox Game Studios Shakes Up 2024 With Major Studio Closure and Franchise Overhaul

In a surprise move that’s sending shockwaves throughout the industry, Xbox Game Studios has announced the immediate closure of Arkane Austin, the studio behind last year’s co-op vampire shooter *Redfall*. As part of a broader strategic overhaul, Microsoft is steering its gaming division in a new direction—shedding underperforming teams and reallocating resources toward its most successful IPs and studios.

Arkane Austin, a subsidiary of Bethesda and once renowned for its work on *Prey*, faced harsh criticism following the troubled 2023 launch of *Redfall*. The game struggled with technical issues, lackluster gameplay, and failed to gain momentum post-launch despite several patches. Critics and fans had long speculated whether Xbox would continue investing in the title, especially amid recent performance evaluations of the Xbox ecosystem.

The closure signals a bolder, perhaps harsher, strategy from Microsoft, one that prioritizes efficiency and brand strength over creative experimentation. Alongside Arkane Austin’s shutdown, Xbox confirmed that future support and content updates for *Redfall* are now canceled, with the game getting delisted from Game Pass in the coming weeks.

But it’s not all bad news from the Xbox camp. The company revealed a renewed focus on franchise heavyweights like *Halo*, *Forza*, and *The Elder Scrolls*, with substantial development resources being funneled into upcoming entries. Additionally, Obsidian Entertainment and Playground Games were singled out as key growth centers heading into 2025.

Xbox president Sarah Bond commented on the reshuffle in a statement: “Our commitment is to delivering world-class gaming experiences. Difficult decisions like these are about aligning our creative ambitions with operational realities. We’re grateful for Arkane Austin’s contributions and the talented individuals affected.”

The closures arrive amid increasing scrutiny of Microsoft’s billion-dollar acquisition of ZeniMax Media in 2021. While that deal added marquee titles to Xbox’s portfolio, concerns have mounted over whether the platform holder can successfully manage such a sprawling network of developers.

As the dust settles on this dramatic realignment, one thing is clear: Xbox is betting big on fewer, more polished hits. Whether that bet pays off—or alienates loyal fans of niche and creative titles—remains to be seen.