Arkane Austin still has one more Redfall update to deliver before work on the game ceases entirely.
Arkane Austin's closure means the end of support for its latest game, Redfall.
Microsoft has shut down and dismantled four major Bethesda studios as part of a "reprioritisation" effort.
Bethesda promised to make Redfall a "good game" following criticism at launch.
Bethesda's Pete Hines says the company remains committed to improving Redfall.
Staff working on Redfall reportedly disagreed with its direction, and hoped it would be canned during development.
Redfall weaves a gorgeous supernatural mystery through basic mission-based gameplay.
In Redfall, it's dangerous to go alone. Take these handy tips with you on your journey.
Phil Spencer has made some big comments on Redfall's critical reception, just days after the game's launch.
Redfall sees Bethesda and Arkane Studios experiment with co-op shooting in a world filled with vampires, but the reception has been lukewarm.