Harvey Smith calls Arkane Austin closure a shock despite the team doing really good work

The Dishonored veteran reflected on the studio shutdown that ended Prey developer's run under Microsoft.

Person wearing hoodie standing near stone building
(Image via Harvey Smith)
TL;DR
  • Harvey Smith called Arkane Austin's closure shocking and noted the team did really good work despite the studio shutdown.
  • Microsoft closed Arkane Austin after Redfall's 2023 failure, ending the studio that created the acclaimed Prey in 2017.
  • Arkane Lyon remains active and is developing Marvel's Blade while Arkane Austin's immersive sim legacy concludes with its closure.
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Harvey Smith described the closure of Arkane Austin as “a shock” in a recent interview with Simon Parkin. The co-creative director of Arkane Austin stated that the studio had produced strong work, leaving him disappointed about its abrupt shutdown.

The veteran developer, known for his leadership on Deus Ex and the Dishonored series, pointed to multiple factors that made creative outcomes unpredictable. He cited the COVID-era pandemic’s impact on development and the broader industry push toward games-as-a-service models.

Microsoft shut down Arkane Austin in May 2024 as part of wider Xbox studio cuts. The closure ended the Texas-based studio that created Prey in 2017 and Redfall in 2023.

Smith served as creative director on Redfall. His comments acknowledge both the quality of past Arkane work and the unpredictable nature of game development under shifting market conditions.

The last remaining studio of Arkane is Arkane Lyon, the French branch that developed Dishonored 2 and Deathloop, which continues to operate under Microsoft. The studio is currently working on Marvel’s Blade, announced in 2023.

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