Microsoft Talks of Importance of Small, Prestigious Games After Shutting Down Hi-Fi Rush Studio

Microsoft is seemingly talking about the importance of smaller games that bring prestige and awards after moving to shut down several studios, including Tango Gameworks, which is responsible for Hi-Fi Rush, a small and prestigious title.

The controversial remarks were made by the head of Xbox Game Studios, Matt Booty, during a town hall where he discussed the division's future goals. When he made his comments, many listeners were expectedly taken aback.

Microsoft Talks of the Importance of Small, Prestigious Games

Microsoft Talks of Importance of Small, Prestigious Games After Shutting Down Hi-Fi Rush Studio — Microsoft spoke about the importance of smaller games that bring prestige and award shortly after announcing that several studios would be closing, including Tango Gameworks, which is responsible for Hi-Fi Rush.
(Photo : Tango Gameworks, Bethesda / Screenshot taken from official website)

Hi-Fi Rush was released last year in a surprise manner and was quickly praised for its innovation and charm amid a plethora of AAA games. The title is a rhythm action game that features music created by The Black Keys and Nine Inch Nails.

It also features an art style that evokes the hyper-stylized games of the PlayStation 2 era. Only four months after it was launched, Hi-Fi Rush hit the milestone of 3 million players and during the 2023-2024 awards season, it won a Game Award, a Game Developers Choice award, and a BAFTA, according to The Verge.

While Microsoft has not publicly shared any sales data regarding Hi-Fi Rush, the company was apparently happy with what the game achieved.

However, when rumors spread that it was not doing well commercially, the vice president of Xbox games marketing, Aaron Greenberg, wrote on X, formerly known as Twitter, that Hi-Fi Rush was a "breakout hit for us and our players in all key measurements and expectations."

All of these developments suggested that Tango Gameworks was able to create a massive hit game, something that was wholly unlike anything that it has made in the past. Prior to Hi-Fi Rush, the developer was exclusively known for its survival horror titles, including The Evil Within series and Ghostwire: Tokyo.

In the announcement of the closure of the four studios, Booty said that the situation was because of a "reprioritization of titles and resources." He said in an email that the company was making changes to the Bethesda and ZeniMax teams, said IGN.

Closure of Several Studios

These were supposedly grounded in prioritizing high-impact titles and further investing in Bethesda's portfolio of blockbuster games and beloved worlds that have been nurtured for decades.

The email also detailed what exactly would be happening to the studios themselves and what is in store for them in the future.

While Arkane Austin is closing, some of its team members will be joining other studios to work on Bethesda's other projects. Similarly, the Roundhouse Games team will join ZeniMax Online Studios.

On the other hand, Alpha Dog Studios and Tango Gameworks will close and there was no mention of the teams being absorbed into other branches. This suggests that all of the employees at these studios will be laid off.

Despite the closure and layoffs, it seems like it's not yet the end as this week, Xbox began offering voluntary severance agreements to producers, quality assurance testers, and other staff at ZeniMax. This comes despite buying the studio for $7.5 billion back in 2020, according to Bloomberg.