Microsoft's Decision To Shut Down Arkane Austin Called 'Stupid' By Studio Founder

Microsoft Corp.’s MSFT decision to shut down Arkane Austin, the studio behind acclaimed titles like Redfall and Prey, has faced blunt criticism from industry veteran and Arkane founder Raphaël Colantonio.

Colantonio, now leading WolfEye Studios, described the decision to PC Gamer as "stupid" and "not a good decision."

A ‘Special Group’ Cut In A Corporate Reshuffle

Reflecting on the closure, Colantonio said: "I think if you look a little bit, it’s obvious that Arkane Austin was a very special group of people that have made some cool things and that could pull it off again."

See Also: Microsoft Issues Redfall Hero Pass DLC Refunds After Arkane Austin Closure

He added: "I think it was a decision that just came down to, ‘We need to cut something.’ Was it to please the investors, the stock market? They’re playing a different game."

The closure of Arkane Austin, alongside studios like Tango Gameworks and Alpha Dog Games, formed part of a broader reorganization within Microsoft, which had announced plans to reduce its gaming division workforce by 1,900 employees.

In a memo, Xbox Game Studios head Matt Booty cited "reprioritization of titles and resources" as the driving force behind the cuts.

While Microsoft’s CEO Satya Nadella received a notable pay raise to $30 million last year, the company continues to grapple with evolving industry demands and cost pressures.

Irreplaceable Talent And The Challenge Of Rebuilding

Colantonio doubted whether the unique chemistry at Arkane Austin could ever be replicated. He pointed to key team members like Harvey Smith and Ricardo Bare, whose collaboration played a huge role in the studio’s achievements.

"When you have that magic of Harvey and Ricardo etc. that all come together, it’s a specific moment in time and space that just worked out this way, that took forever to reach,” he said. “Those people together can really make magic."

"It's not like, ‘Doesn’t matter, we’ll just rehire.’ No, try it. That's what big groups do all the time. They try to just hire massively and overpay people to create those magic groups. It doesn't work like this. So to me, that was stupid. But what do I know?"

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