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The gaming community is currently mourning the closure of two Xbox-owned studios, Arkane Austin and Tango Gameworks. Tango was most well-known for the exceptional indie titleHi-Fi Rush, while the former is infamously known for the disastrousRedfalland the underratedPrey.

With the recent closure of the studio, many fans and devs alike are both stunned and confused as to what could have led to this decision. Head of Arkane Lyon, Dinga Bakaba, recently shared his thoughts on the whole matter, and to be blunt, he sounds mortified by the events that have just taken place.
Head of Arkane Lyon Reacts to Horrific Decision from Xbox to Close Austin Studio
Generally speaking, the acquisition of Bethesda was a huge deal for Microsoft. Now that the ship has sailed, gamers are left wondering why there was a sudden shift in attitude towards studios under Bethesda.
Signup herehttps://t.co/wb1R4m4emjto receive details on how eligible players can receive this credit.pic.twitter.com/69Os17kpQ8

— Arkane Studios (@ArkaneStudios)June 03, 2025
Bakaba took to X to explain his perspective on the matter. Simply put, his plea is that executives take better care of their artists, as they are the source of their business. Video game development, or any other art-making process, is no easy task, and when it goes well, the publisher is proud, but even the slightest discrepancy, and something like this happens.

For now, great teams are sunsetting before our eyes again, and it’s a fucking gut stab. Lyon is safe, but please be tactful and discerning about all this, and respect affected folks' voice and leave it room to be heard, it’s their story to tell, their feelings to express.
— Dinga Bakaba 451 (@DBakaba)June 04, 2025

All Bakaba is asking is that instead of taking such drastic measures because of one undercooked game, publishers should focus on improving their artists’ work conditions and, rather than using them as scapegoats, should own up to the problem.
Xbox Game Pass June 9 Showcase Is Huge News: Rumored New Xbox Exclusive Can Replace Helldivers 2
He also goes on to say that Lyon is safe, but the way he phrased it kind of makes it sound like for big publishers, pulling the plug is way too easy. Austin can make an incredible game, as is evident byPrey, so rather than just cutting them off, maybe giving a great team another chance would have been more than substantial.
Thanks for Prey
— 12thMan_09 (@Si1verB3ar)June 01, 2025
EvenHelldivers 2‘s Johan Pilestedt recently shared his thoughtson this distressing matter. Regardless, Bakaba’s sentiments are completely valid, and it seems like Lyon could also be in danger if the upcomingMarvel’s Bladegame isn’t a success.

Fans Seemingly Turning on Microsoft After Closure of the Aforementioned Studios
It feels like what Xbox is currently lacking is a good roadmap. Unfortunately,Starfieldjust didn’t live up to the expectations of a large group of gamers, and games likeHi-Fi Rushfelt like lights at the end of a tunnel.
Xbox Is Shutting Down 2 Studios – One Of Them Made The Best 21st Century Action-Adventure, The Other Gave Us The Best Survival-Horror Of All Time
But considering how the studios behind such games are being handled, many are outright turning on the huge Bethesda acquisition.
I knew than bethesda and activision Blizzard adquisition going to Microsoft it was going to be a bad idea i knew it
— Scoty (@Scoty3412)August 01, 2025
On the other hand, Sony is still constantly one-upping itself with the recent releases ofFinal Fantasy 7 RebirthandStellar Blade.Even therecentHelldivers 2PSN ID link controversyhas now been resolved.
So, now the question is, what exactly could Xbox be planning to do in the near future with all the studios that it now has under its disposal?
Do you think the closure of Arkane Austin was a good idea? Or will Lyon deliver with the upcomingMarvel’s Blade? Let us know in the comments!
Adil Farooq
Senior Gaming Content Editor / Critic
Articles Published :100
Ever since he can remember, Adil has been deeply embedded within the world of video games. You’ll see him regularly grinding out the hot new RPG, like Elden Ring, or perhaps an awesome narrative adventure, like The Last of Us. Even after playing all these new and grand games, he’ll still make time for some awesome classics, like Final Fantasy or Castlevania.