The day after Microsoft announced the closure of four game studios, including Japan-based Tango Gameworks, Xbox Game Studios head Matt Booty held a town hall meeting to discuss the division’s future direction. During the meeting, Booty emphasized the importance of creating smaller, prestigious games that garner awards and critical acclaim, according to remarks shared with The Verge.
This statement surprised many attendees, given that Tango Gameworks had recently achieved considerable success with ‘Hi-Fi Rush,’ a small but highly praised rhythm action game that diverged from the studio’s usual survival horror genre. Released last year, ‘Hi-Fi Rush’ garnered acclaim for its innovative gameplay and distinctive art style, reminiscent of PS2-era games. Within four months, the game had attracted 3 million players and had won awards such as a Game Award, a Game Developers Choice award, and a BAFTA.
Despite the game’s success and Microsoft’s earlier endorsement, the company’s sudden closure of Tango Gameworks has raised questions about the consistency of its goals. Microsoft’s VP of Xbox games marketing, Aaron Greenberg, previously called ‘Hi-Fi Rush’ a “breakout hit” in response to rumors about poor commercial performance. In various interviews, including one with Kinda Funny Games, Xbox head Phil Spencer had praised Tango Gameworks for exploring creative new directions, stating that Xbox was committed to providing a platform for developers to push boundaries and step outside their comfort zones.
Moreover, the closure of Tango Gameworks has implications for Microsoft’s commitment to fostering Japanese games and partnerships. In a September 2023 interview with Game Watch, Spencer mentioned that players could expect more AAA titles from Japan, citing exclusive Xbox 360 games like ‘Lost Odyssey’ and ‘Blue Dragon.’ However, with Tango Gameworks’ closure, doubts have arisen about whether these commitments will continue.
Given the growing popularity of small-scale, innovative games, as seen with the success of titles like ‘Balatro,’ ‘Manor Lords,’ and ‘Hades 2,’ Microsoft’s decision to shut down a studio responsible for creating a game with this same spirit seems counterproductive. According to Bloomberg, Tango Gameworks was in the process of pitching a sequel to ‘Hi-Fi Rush’ before the closure announcement.
Microsoft’s leadership appears to have disregarded the value of the creative success they were aiming to achieve. Booty’s town hall remarks suggest that while Microsoft is seeking prestigious, award-winning games, the company may not recognize or fully understand the potential in its existing studios and projects.
Microsoft has not yet commented on the closure of Tango Gameworks or how the company plans to reconcile the dissonance between its stated goals and its actions.
