May 7 (Reuters) - Microsoft's ( MSFT ) Xbox is shutting

down a number of gaming studios including Arkane Austin, making

it the latest publisher to shut down studios amid signs of a

gaming slowdown.

Studios such as "Hi-Fi Rush" maker Tango Gameworks,

headquartered in Tokyo, and Canada-based Alpha Dog will also be

closed and some employees will be laid off, Matt Booty, head of

Xbox Game Studios said in a memo that was seen by Reuters on

Tuesday.

Xbox declined to comment when asked about the number of

employees impacted by the layoffs.

Growth in personal computing and console gaming is expected

to remain below pre-pandemic levels as gamers record fewer hours

of playtime owing to weaker release schedules, data from

research firm Newzoo showed.

The "reprioritization of titles and resources" is so that

Xbox can invest deeply into its portfolio of games and new

intellectual property, according to Booty.

All the affected studios are units of ZeniMax Media, which

was acquired by Microsoft ( MSFT ) for $7.5 billion in 2021, and

Bethesda.

Microsoft's ( MSFT ) Xbox content and services segment reported a 62%

jump in third-quarter revenue last month, largely driven by the

Activision Blizzard acquisition.

"Grand Theft Auto" maker Take-Two Interactive said

it would shut down two subsidiary studios as part of a mass

layoff, Bloomberg News reported last week.

Microsoft ( MSFT ) previously laid off 1,900 employees at Activision

and Xbox at the start of the year.

Some developers from Arkane Austin will join other studios

and work on projects across Bethesda, the creator of "The Elder

Scrolls" and "Fallout" titles.

Servers of the game "Redfall", made by Arkane, will continue

to remain online for players.