It is no secret that Microsoft might have executed one of the biggest misfires in its career as a console platform. This week, it was reported that the firm went ahead and closed four developers attached to the Bethesda division – Arkane Austin, Alpha Dog Games, Tango Gameworks, and Roundhouse Studios. Since the decision, the firm has been faced with waves of scrutiny from all sides of the industry.

In the past, we’ve witnessed Microsoft put itself in the crosshairs of similar degree with the previous decision to charge more for Xbox Live Gold. The decision was instantly undone after users became vocal on the announcement. And while the weight of this new decision seems to be even heavier this time around, there has been little activity from Xbox or greater Microsoft on the decision directly.

Instead, there has been reports from sources familiar with the firm that gave better understanding. According to The Verge, internal remarks from Xbox Game Studios head Matt Booty said “We need smaller games that give us prestige and awards.” Gathered from how Hi-fi Rush performed, one project from the four teams in this decision, has been exactly that Booty stated.

Previously in 2023, there were concerns that Hi-Fi Rush was underperforming commercially despite the glowing response for the game’s shadow drop at launch. However, Xbox general manager Aaron Greenberg told the game was a “break out hit” and that the Xbox firm “couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.” All things considered, there’s only more questions why Tango Gameworks was included in the announcement.

According to a separate report, it was revealed that Tango Gameworks was already prepared to pitch a sequel to the 2023 surprise release. It is understood that the decision to reduce the number of studios was due to Booty’s understanding that studios were ‘spread too thin’. But, it was never clearly elaborated on the direct reasoning for Xbox to axe the developer.

What’s more, Phil Spencer even gave a statement on the opportunity to work with Tango Gameworks in 2021. “I’ve talked for a long time about our desire to have more of a first-party presence in Japan. This is a great step there.” You can read the full report by heading here.

What are your thoughts on the statement from Microsoft?

Source: The Verge

Nick Moreno Content Writer

Nick has over a decade of video game journalism under his belt. Outside of writing about trending & indie releases, he has also provided coverage at multiple events across the United States including Penny Arcade Expo & E3.

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