Amidst the fiasco that is Microsoft shutting down numerous studios including Arkane Austin, who are the folks behind titles like Prey and the underwhelming Redfall, had been in the works on a new immersive simulation game before its unfortunate closure.

The studio was reportedly looking to revisit the immersive sim genre, possibly with a new Dishonored instalment, amidst the disastrous launch of its multiplayer vampire shooter, Redfall.

In a recent report by Bloomberg, Xbox president Matt Booty addressed the closure during a town hall meeting, asserting that it wasn’t directly tied to Redfall’s commercial and critical performance. Instead, the decision seemed to align with a strategic shift towards focusing on fewer, larger projects, as noted by Jill Braff, head of ZeniMax studios, during the same meeting.

Public disappointment over the closure was evident when Arkane Lyon’s Dinga Bakaba took to social media to describe the move as “a gut stab.” Bakaba, currently involved in Xbox’s collaboration with Marvel Games on Blade, expressed sentiments shared by many in the gaming community.

This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

The closure of Arkane Austin coincides with the shuttering of Tango Gameworks, Roundhouse, and Alpha Dog studios. Furthermore, the cancellation of Redfall’s ‘Hero Pass’ DLC has been confirmed, though ZeniMax has promised compensation for players who had already purchased the content.

As the gaming industry witnesses these changes, fans remain hopeful for the future, eager to see what new projects and collaborations emerge from the evolving landscape.