Arkane Austin’s closure still casts a long shadow, with Dishonored’s director lamenting the projects and potential left on the cutting‑room floor — "We were making something very cool."

An official screenshot of Redfall gameplay.

The thousands of game developer layoffs and numerous studio closures that have come in the past several years have all been devastating, but one that left a particularly long-lasting sting for many was Microsoft and Xbox's shuttering of Arkane Austin in 2024. Known for creating the acclaimed stealthy immersive sim Dishonored as well as the 2017 cult classic Prey, the developer got the axe a little over one year after its 2023 co-op vampire-hunting FPS Redfall flopped at launch.

Arkane Austin's shutdown was a tragic end for the studio's employees and for fans of its creative, systems-driven games, and it's also one we haven't gotten much of a behind-the-scenes perspective off. At least, not until now.