Redfall Version 1.4 Released After Arkane Austin Layoffs

After Microsoft closed Arkane Austin and laid off its staff while work on Redfall’s final major update was still underway, a small group of former developers reportedly managed to finish the update anyway—leading to Redfall’s Version 1.4 release in late May 2024.

Closure happened before the final update was finished

Redfall launched in May 2023 in a state that former Arkane Austin leadership later described as problematic both technically and in terms of gameplay. Over the following year, Arkane Austin worked on improvements, with then-studio head Harvey Smith stating the team fixed thousands of issues.

Microsoft announced Arkane Austin’s closure on May 7, 2024, but Version 1.4 was still in progress at that time.

Former staff returned to complete Version 1.4

In a recent interview with The Game Business, Smith and Ben Horne—who was production lead at the time—said the situation unfolded in an unusual way after the layoffs.

Smith and Horne said that developers who had already been dismissed contacted Microsoft asking if the unfinished update could be released.
They described the request as: the developers no longer worked there, but wanted Microsoft to let them publish the work.
Microsoft reportedly agreed to the plan, allowing six or seven former employees to sign arrangements and return to the already closed studio to finish the update.
The completed update was released on May 30, 2024 as “Game Update 4.”

Horne later said publishing after being laid off and watching the studio close felt like a “released success” in his career. Smith added that while this version likely still wouldn’t have turned Redfall into a major hit at its original launch window, it would have been “a much, much better game.”

Update 4 changed Redfall’s playability and gameplay systems

Game Update 4 included multiple changes aimed at improving the game’s structure and long-term accessibility.

An offline mode was added.
A pause function for single-player was introduced.
Because of these changes, Redfall was no longer dependent on an online connection in order to remain playable after development ended.
The update revamped vampire nests.
A new progression system for city districts was added.
Enemy behavior and AI were also improved again.

Game Update 4 landed a little over three weeks after Arkane Austin’s closure. At the time, expectations had been that Redfall would not receive further updates. The previously promised hero pack was also not released; owners of the relevant editions were reportedly set to be compensated instead.

Smith disputes “Microsoft forced Arkane” narrative

Smith pushed back on the idea that Microsoft forced Arkane into a service-style model. He said the studio had been pulled in by the broader Games-as-a-Service trend at the time.

Smith described having “foolish audacity” in believing Arkane could blend its strengths—classes and shifting mechanics—with a service concept.
He also pointed to the pandemic, staffing changes, and other development difficulties.

Looking ahead, Smith and Horne have since co-founded Black Pony Immersive with other former Arkane veterans. The 26-person team is reportedly funded by an unnamed publisher and plans to create narrative-focused first-person single-player games where challenges can be solved in multiple ways. No specific new game has been announced yet.