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Redfall‘s studio was one of the many that were announced to be closed down by Microsoft around 24 hours ago.

And, in what seems to be a shocking twist, it looks like the studio staff affected by these shutdowns was still working on its respective games the very day Xbox executive Matt Booty sent his now-infamous email.
Redfall Developers Were Still Working on the DLC
Nobody was expecting the absolute internet frenzy that went down less than a day ago when Xbox reportedly announced that it would beclosing down many of its studiosin a move to reprioritize titles and resources.
Xbox’s Tone Deaf Announcement Speaks Volumes After Closing Four Studios in One Day
One of these studios included Arkane Austin. According to the email that was sent (and shared byIGN),
This studio will close with some members of the team joining other studios to work on projects across Bethesda. Arkane Austin has a history of making impactful and innovative games and it is a pedigree that everyone should be proud of.

It also mentions that theRedfallDLC will be canceled, and the previous update will be the last. Servers will remain online, and some sort of offer will be given toplayers who purchased the DLC beforehand.
Redfall’s DLC was being worked on 5 hours agopic.twitter.com/ses9IvakXh

— JuiceHead (@JuiceHead33)July 23, 2025
If that wasn’t bad enough, inquisitive X/Twitter users have discovered that the game’s developers were working on the DLC just five hours before they were informed that their studio would be closing down.

Imagine being told your project is over just hours after you were working on it. Needless to say, the entire situation has been terrible for everyone involved; a lot of studio staff has taken to social media to express its hurt, frustration, fear, and anger over the sudden end of its jobs.
The Community Is Angry, and Everyone Wants an Answer
The sudden announcement that Arkane Austin, Alpha Dog Studios, Tango Gameworks, and Roundhouse Games would be closed or consolidated with other studios shocked the entire gaming community.
Boss: “Hey Frank, whatcha working on?”
![[REDACTED] Review (PS5) – Innovation Caught the Escape Pod Faster Than We Did](https://i2.wp.com/fwmedia.fandomwire.com/wp-content/uploads/2024/11/05095712/redacted-review-768x432.jpg)
Frank: “Oh, just the Redfall DLC.”
Boss: “Well, you can stop now because there isn’t going to be a DLC.”
Frank: “Haha w-what?”
Boss: “We’re shutting the company down, also you’re fired.”
— Paradigm City (@ParadigmCityy)July 22, 2025
X/Twitter is on fire right now, with people scrambling to understand what went down and why. The Arkane Austin case is especially bizarre, with many shocked that staff was working on the game just before being informed that its project was a bust.
So they must have learnt at the same time as everyone else.NO respect at all. Execs living in a bubble, obsessed by numbers.
— BROK THE INVESTIGATOR 🐊 Wishlist the DLC! (@COWCATGames)August 05, 2025
Because of this discovery, the studios were likely given zero heads-up before being told they were being closed.
Xbox’s Patience Ends with Redfall Developer as Arkane’s Austin Studio Closed, Along With Hi-Fi Rush’s Tango Gameworks and Two Others
In that case, none of the staff was prepared to be let go, nor would it have enough time to plan what to do after.
I’m actually dreading the future of the games industry right now. This can’t be the new normal now.
— Marvelous Gamer (@Mar_DC767620022)August 15, 2025
It seems like there’s news of a studio closure happening every other week. With the direction the industry is heading, it feels like we’re on the verge of a major crash.
This is a scary place to be for many; of course, gamers lose out on good games. But what does this mean for those who have dedicated their entire lives to an industry going through an endless cycle of crunches and layoffs?
What do you think is the solution to this industry epidemic? Please feel free to share your thoughts in the comments below.
Vibha Hegde
Critic/Gaming Writer
Articles Published :594
Vibha is an avid gamer that has been writing about video games for several years. When they’re not complaining about the lack of a Bloodborne sequel or brushing up on the Yokoverse lore, Vibha is busy watching 3-hour video essays on horror games they’re too scared to play themselves.