Microsoft’s Xbox division is shutting down four Bethesda studios

Microsoft Corp.’s Xbox gaming division will shut down four subsidiaries, including the game studio Arkane Austin, according to an email reviewed by Bloomberg.

Arkane Austin’s most recent game, Redfall, was one of Microsoft’s biggest flops last year.

Xbox will also shutter subsidiaries Alpha Dog Studios, Roundhouse Games and Tango Gameworks, the Japanese studio behind critically acclaimed hits such as Hi-Fi Rush.

“These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades,” wrote Matt Booty, Head of Xbox Game Studios, in an email to employees Tuesday.