Microsoft: New EA in Studios Closure Post-Acquisition?

Microsoft is being compared to Electronic Arts (EA) for its recent decisions to close studios shortly after acquisitions, a practice that has generated criticism in the industry. The recent closures of Arkane Austin and Tango Gameworks in May 2024, following the purchase of ZeniMax Media in 2021 for $7.5 billion, and the mass layoffs of around 9,000 employees in June 2025 in its divisions, including Xbox and Activision Blizzard, reinforce this comparison. Microsoft's policy raises serious concerns about the future of creative studios and the fate of talents after major acquisitions.

The similarity with EA, which has a history of closing acquired studios, suggests a worrying pattern. Microsoft seems to prioritize consolidation and cost reduction, even if it means the end of talented teams and project cancellations.

Electronic Arts has gained the reputation of a "studio graveyard" over the years, with a series of acquisitions followed by the closure of promising developers. Notable examples include Westwood Studios (Command & Conquer), Origin Systems (Ultima), Pandemic Studios (Mercenaries), and Visceral Games (Dead Space), all closed after being acquired by EA. This strategy, often justified by the pursuit of efficiency and focus on larger franchises, has resulted in losses of talents and innovative projects.

Microsoft now seems to be following a similar path. The acquisition of ZeniMax Media, parent company of Bethesda Softworks and studios like Arkane Austin and Tango Gameworks, aimed to strengthen the Xbox Game Pass with heavyweight exclusives. However, the recent closures contradict the narrative that Microsoft would be a safe "home" for developers.

List of studios closed by Microsoft in May 2024:

• Arkane Austin (developer of Redfall, Prey)
• Tango Gameworks (developer of Hi-Fi Rush, The Evil Within)
• Alpha Dog Games (developer of mobile games)
• Roundhouse Studios (reorganized and integrated into ZeniMax Online Studios)
   

The closure of Tango Gameworks in particular, sparked great outrage, given the critical success of Hi-Fi Rush, released in January 2023 and acclaimed for its innovation and quality. The decision to close a studio that delivered a recent success and a Day 1 game on Game Pass raises serious doubts about Microsoft's management and strategic planning.