Former Elder Scrolls Online boss describes Tango Gameworks and Arkane Austin closing as a turning point at Xbox: ‘I know where this is going’
Matt Firor, founder of ZeniMax Online Studios, has characterized the simultaneous closure of Arkane Austin and Tango Gameworks as a pivotal moment signaling Xbox’s current direction. In an interview with MinnMax, Firor discussed the cancellation of his MMO Project Blackbird and the broader implications for developers within the Xbox ecosystem.
The back-to-back studio closures reportedly triggered significant concern among developers, who drew parallels to what Firor termed an “EA 2008” situation—referencing Electronic Arts’ mass layoffs in response to the 2008 Financial Crisis. EA cut approximately 1,100 jobs in early 2009, followed by even larger rounds of reductions.
Firor’s comments suggest that these closures were widely perceived within Xbox’s internal development community as indicative of broader organizational challenges and potential future restructuring. The simultaneous nature of the shutdowns created tangible uncertainty among staff regarding the platform’s strategic direction and long-term stability.
The remarks highlight escalating tensions within the gaming industry concerning studio consolidation and workforce reductions. The comparison to recession-era cuts underscores growing developer concerns about potential further reductions at Xbox and represents significant losses for the platform’s portfolio.