Last week, Take-Two Interactive (the publisher of cash-printing video game Grand Theft Auto, for context) announced the closure of two of their internal studios: Kerbal Space Programme 2 developers Intercept Games and OlliOlli creators Roll7.
Yesterday, tech behemoth Microsoft shuttered Arkane Austin, Alpha Dog and Tango Gameworks. Arkane’s Austin outfit was responsible for the brilliant Prey as well as last year’s less brilliant Redfall. Tango Gameworks were the creators of The Evil Within, Ghostwire: Tokyo and Hi-Fi Rush. Alpha Dog specialised in mobile development and had recently released Mighty DOOM, a handheld reimagining of ID’s classic shooter.
In a year already defined by heartless layoffs, you’d think we’d become numb to these announcements. But even as an outsider, every single one of these closures still sting.
I just don’t understand.
A reminder: Microsoft acquired Bethesda, the previous parent company of Arkane Austin, Tango Gameworks and Alpha Dog, for $7.5 billion in 2020. In 2023, Microsoft also hoovered up publisher Activision Blizzard for $75.4 billion. Two enormous acquisitions amounting to just over $80 billion, completed within just three years.
Although Redfall was a commercial and critical flop, Arkane Austin’s previous game – Prey – was universally lauded as an exceptional immersive sim. Arkane Lyon, a studio intrinsically paired with their Austin counterpart, are the developers behind multiple modern classics such as Dishonored and Deathloop.
Tango Gameworks, on the other hand, held a near impeccable release record since they were formed by Resident Evil creator Shinji Mikami in 2010. Their final game, 2023’s excellent Hi-Fi Rush, became the poster child for Xbox Game Pass, perhaps by being the only platform exclusive released last year that was actually good.
Then there’s Roll7. Indie to their bone, the team were responsible for revitalising the long-dormant skating genre with OlliOlli, a sidescrolling precision platforming series that evolved in rich and wonderful ways with each new release. Elsewhere, Rollerdrome and Laser League were big swings that may have failed to find mainstream audiences but quickly became cult favourites. Roll7 were a force to be reckoned with.
And now they’re all gone.
Why?
I know the answer. Line-goes-up capitalist bullshit. I understand, to some degree, the reasoning, no matter how deranged and heartless it may be. Culling teams makes executives more money. It’s vile, but it’s a thing.
But I don’t understand why it’s a thing. It’s so cruel. So upsetting. Why did Microsoft spend $80 billion to flush two teams with proven track records down the toilet? What possible financial savings are Take-Two making by cutting Roll7 that they presumably don’t make back in GTA Shark Card purchases over the course of a week? Of a day?
I just don’t understand.
It fucking sucks.
Update: Since publishing this piece yesterday, a few outlets have published longer, more insightful takes that I think you may be interested in reading. Eurogamer’s op-ed, in particular, is brilliant: