Xbox Exec On Why Microsoft Closed Hi-Fi Rush Studio Despite The Game Doing Well

Xbox has made headlines throughout 2024 for some of the dramatic business decisions it's made, including laying off more than 1,000 people and shuttering studios. Specifically, many have commented on and passionately reacted to the closure of Hi-Fi Rush developer Tango Gameworks. But why close Tango, and what efforts might have been made to avoid such a move? Xbox president of gaming content and studios Matt Booty was asked by Variety if Microsoft attempted to seek another buyer for Tango, and he suggested that this could have occurred.

He cited an example of how Microsoft once owned Splosion Man studio Twisted Pixel before the team regained its independence. He said Twisted Pixel evolved to no longer become a good match for being an internal Microsoft team, and Microsoft wanted to "set them up for success," so it brokered a deal with the company to let it go private again.

Booty did not get into specifics about whether or not this could have happened with Tango, but he said Microsoft "absolutely" considers "possible business options" that might be available to have a studio change hands. "Sometimes those things come together, sometimes they don't," he said.

For Tango, Booty said the decision to close the studio was not made lightly. He said the team's latest game, Hi-Fi Rush, was a "great game" that "did well for us." This came after a report said Hi-Fi Rush didn't make the money Microsoft was looking for.

Booty went on to say that when Microsoft was plotting out the future of Tango, it considered a number of factors, including the company's creative leadership and if the team is "the same team" that previously made something successful. "We have to look at all of those things together and then ask ourselves are we set up for success going forward? And while there may have been factors and situations that previously led to success, they may not all still be in place as you look at what you're doing going forward."

The line about the team leadership and continuity is catching people's attention. In particular, many are wondering if the decision by Tango co-founder Shinji Mikami to leave the company in 2023 played into Microsoft's thinking when it came to closing the studio. We may never know the real reason why Microsoft opted to shutter the studio.

Booty also discussed how Toys for Bob, one of the Activision-owned studios that Microsoft acquired when it bought Activision Blizzard, split off from Microsoft and is now an independent studio. Microsoft is maintaining a business relationship with the company, though, as it recently signed a publishing deal for a new title from Toys for Bob, and Booty said more details will come in due time.

Microsoft also closed Redfall studio Arkane Austin earlier this year.