Arkane Austin wanted to make a new immersive sim before Microsoft closed the studio down, reports suggests

(Image credit: Arkane / Bethesda)

A new report suggests that Arkane Austin wanted to make a new single-player game, such as a Dishonored sequel, before the studio was closed.

This comes from a new Bloomberg report from Jason Schreier, which helps shed more light on Microsoft's recent decision to shut down multiple Bethesda Softworks studios, including Arkane Austin, Tango Gameworks, and Alpha Dog Games.

According to multiple sources familiar with the situation, Arkane Austin - best known for its work on Dishonored, Prey, and 2023's Redfall - had been looking to return to its roots with a new single-player "immersive sim".

The idea was still in the pitching phase before the studio's closure, but the single-player project was suggested to be a "new entry in the Dishonored series". 

It's uncertain at this time if the pitch could be passed on to another team under Arkane Studios, such as Arkane Lyon.

In the same report, it was also said that Tango Gameworks had pitched a sequel to its critically acclaimed rhythm-action Hi-Fi Rush before its shutdown.

Xbox Game Studios head, Matty Booty, and head of ZeniMax studios Jill Braff were both present for a town hall meeting with ZeniMax staff on May 8 to discuss the recent studio closure. 

Booty reportedly praised Hi-Fi Rush but didn't give a reason for Microsoft's recent move, while also claiming Arkane Austin's shut down had nothing to do with Redfall underperforming following it's launch last year. 

He later said he felt Microsoft's studio system was "spread too thin", comparing it to "peanut butter on bread". Booty also said they decided to close Tango Gameworks and Arkane Austin's to "free up resources elsewhere".

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