Xbox is shutting down 'Redfall' developer Arkane Austin and three other studios.

The gaming giant has confirmed layoffs across the four studios - also including Tango Gameworks, Alpha Dog Games and Roundhouse Games - and Xbox executive Matt Booty described the decision as "tough".

As reported by IGN, he wrote in a company-wide email: "These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things.

"I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market.

"We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games."

Arkane's most recent 'Redfall' update will be the final one with development now closing, while plans for an offline mode are seemingly now axed, although servers will remain online.

Arkane said in a statement: "To everyone that has supported the work from our Austin studio over the years, thank you. Thank you for spending time in our worlds and making them your own.

"Arkane Lyon will continue their focus on immersive experiences where they are hard at work on their upcoming project.

"Redfall players who purchased the Hero pass as part of the premium Bite Back Edition or the premium Bite Back upgrade will be eligible to receive the value of the upgrade."

Tango Gameworks - the team behind 'Hi-Fi Rush' and 'The Evil Within' - also confirmed the sad news.

They tweeted: "Thank you to everyone that explored the worlds we created. 'Hi-Fi Rush' along with Tango's previous titles will remain available and playable everywhere they are today."

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