Xbox Exec Reportedly Told Staff ‘We Need Smaller Games That Give Us Prestige and Awards’ a Day After Shutting Down Hi-Fi Rush Dev Tango Gameworks

The boss of Xbox Game Studios reportedly told Bethesda staff “we need smaller games that give us prestige and awards” just a day after shutting down Hi-Fi Rush developer Tango Gameworks.

The Verge reported on the remarks after it emerged that Tango Gameworks was in the process of pitching a Hi-Fi Rush sequel and wanted to hire additional staff before its sudden closure. Similarly, Arkane Austin had hoped to make another immersive sim in the Dishonored vein that would have required staffing up before it was shut down.

The report, which sheds additional light on the shock closures of Tango Gameworks and Redfall developer Arkane Austin, claimed Xbox leadership felt that the overall studio system was "spread too thin," with Xbox Game Studios chief Matt Booty reportedly likening it to "peanut butter on bread."

IGN first broke the news of the closures on Tuesday along with a report that Arkane Austin was working on DLC for Redfall before it was closed.

Xbox leadership held a town hall meeting with ZeniMax staff on Wednesday, May 8, and during it attempted to answer key questions around the decision to close a number of Bethesda studios, one person who was in attendance told IGN. Microsoft has declined to comment.

IGN understands that Booty told staff the closure of Arkane Austin was not about the failure of last year’s disastrous Redfall, rather about the future prospects of the studio. Bloomberg’s Jason Schreier has reported that ZeniMax was under pressure to make significant cuts, and chose Tango Gameworks and Arkane Austin because they were in the process of pitching projects that would have required increased investment, rather than studios already working on greenlit games. One person in attendance at the meeting told IGN that the suggestion was that because these studios were currently pitching new games, they had the weakest legs to stand on when it came to picking who to cut.

IGN also understands that the line about studios being spread too thin potentially includes Xbox studios, too, so not just those under Bethesda owner ZeniMax’s umbrella. There is now increasing concern that other Xbox studios may face the chopping block as Microsoft continues to make cuts to its gaming business.

Tango Gameworks' critically acclaimed rhythm action game Hi-Fi Rush was deemed a success upon its launch. It shadow-dropped straight into Game Pass on Xbox and PC, and was sold outside the subscription service priced $30. Last year, amid reports that Hi-Fi Rush had failed to sell well enough, Aaron Greenberg, vice president of Xbox games marketing, insisted that Hi-Fi Rush “was a break out hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.”

Hi-Fi RUSH was a break out hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.— Aaron Greenberg