According to an internal email from Matt Booty, head of Microsoft Game Studios, Microsoft has closed four Bethesda studios. Arkane Austin of "Red Cloud Island", Tango Gameworks of "Perfect Sound Wave", mobile game development studio Alpha Dog Studios and Roundhouse Games were merged into ZeniMax to assist in the development of "The Elder Scrolls Online".
Matt Booty said: “These changes are based on prioritizing high-impact games and focusing resources on Bethesda’s successful games and beloved brands. This kind of game and resource Prioritization means some of our teams will be reassigned to other teams, and some of our colleagues will have to leave us.”
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