Microsoft closes several large Bethesda affiliated game studios

Original Article ↗ Hacker News Discussion ↗

Scope of the Closures & Studio Histories

  • Commenters note only Arkane Austin (Redfall, Prey 2017) is closing, not Arkane Lyon (Dishonored, Deathloop).
  • Several argue Redfall’s failure was driven by imposed multiplayer/GaaS pivots rather than studio talent.
  • Many lament Tango Gameworks’ shutdown after Hi‑Fi Rush, described as a critically acclaimed, inventive AA‑scale hit that showcased Game Pass.
  • Some say they won’t miss these studios; others push back, citing Prey, Dishonored, Hi‑Fi Rush, The Evil Within, and Ghostwire as important or beloved titles.
  • Immersive sims (Looking Glass, Irrational, Ion Storm, Arkane) are seen by some as a “cursed” genre: ambitious, niche, and often made by studios that later die.

AA vs AAA vs Indie: Definitions and Value

  • There’s extensive debate over what “AA” means: team size, budget, scope, price point, or publisher involvement.
  • One view: AA too often means “wannabe AAA without resources,” doomed to mediocrity.
  • Counter‑view: many favorite games are AA or “mid‑budget” (examples like Hades, Hellblade, Plague Tale, Yakuza, Deep Rock Galactic, Helldivers 2, various metroidvanias and RPGs).
  • Some argue “indie” should mean financially/publishing independent; others note it has drifted to mean “small scale.”
  • Several see a broader pattern: mid‑budget games (in both games and film) are being squeezed out between giant AAA and tiny indies.

Microsoft, Game Pass, and Business Strategy

  • Strong criticism that Xbox leadership faces no consequences while studios are shuttered.
  • Some label Game Pass a “failure” that devalues games and undermines sales; others insist there’s no proof without financials and see it as a loss‑leader land‑grab.
  • Hi‑Fi Rush’s success on Game Pass yet studio closure is cited as evidence that even “wins” don’t protect teams.
  • Debate over Xbox’s shift from hardware to a broader software/subscription focus; some see it as rational, others as evidence of Xbox console decline.
  • Concerns raised that Microsoft promised no layoffs in the Activision deal context but has since conducted multiple rounds.

Industry Economics, Layoffs, and Creative Direction

  • Many see AAA economics as unsustainable: huge budgets, long cycles, extreme risk, and incentives to extend old live‑service titles instead of greenlighting new IP.
  • Live‑service hits like Fortnite are said to absorb player time that might have gone to many AA games.
  • Commenters decry pervasive layoffs across tech and games, short severance, and “hire/grind/fire” culture.
  • Some argue consumers themselves signal comfort with infinite sequels and remasters, reducing incentive for innovation.
  • Others highlight thriving indie innovation but complain about early‑access fatigue and lack of polished mid‑budget alternatives.
  • A few hope laid‑off developers will found new indie studios and produce “gems,” as has happened after previous closures.