Bethesda: Microsoft puts a red pen on its gaming company

According to a recent report from IGN, Microsoft is embarking on another round of layoffs and this time it's putting the red pen on its subsidiary Bethesda. Many studios are closing or having to merge with other peers, including well-known names. Microsoft's Matt Booty made the announcement in an email that IGN confirmed was real. It is currently unknown how many employees will lose their jobs.

Elephants in the room include Tango Gameworks, who was responsible for The Evil Within and Hi-Fi Rush, and Arkane Austin, creator of Prey and Redfall. Additionally, Alpha Dog Studios will close and Roundhouse Games will be merged into ZeniMax Online Studios, consolidating the teams behind The Elder Scrolls Online. A number of positions at Bethesda will also be eliminated.

Microsoft is also announcing discounts on two existing games. Alpha Dog's mobile game Mighty Doom will be retired on August 7, and Redfall will no longer receive any further updates. However, the servers will remain online for the time being and Microsoft wants to put together special offers to compensate players who purchased Redfall's Hero DLC.

Microsoft justifies these steps – as always – by setting new priorities for resources and addresses. At least big studios like Machine Games, id Software, Arkane Lyon, and Bethesda Game Studios were not affected by the cuts. Fans of Fallout, Doom, or Starfield don't have to worry about anything going on here right now.