Microsoft has announced the closure of several internal Bethesda Softworks and ZeniMax Media studios, according to reports from IGN and Bloomberg, which cites a letter from Matt Booty, head of Xbox Game Studios.
The letter, quoted by the publications, states that the reason for the closures was a reallocation of resources and a change in priorities. The list of affected studios includes:
Details of the number of developers who lost their jobs as a result of these changes were not disclosed. Nor does the letter specify why the decision was made to shut down Tango Gameworks, which had been producing successful projects.
Booty acknowledged that the company had to make “difficult choices” to increase investment in more important projects. The specific areas where resources will be reallocated were not specified, but it is mentioned that Bethesda's publishing and corporate teams will also be affected by the cuts.
Shinji Mikami, founder of Tango Gameworks, recently mentioned that the studio didn't actually function as an independent company, with ZeniMax only releasing games under that brand.