Microsoft Gaming exec reportedly said Xbox needs “smaller games” after it closed Hi-Fi Rush developer Tango Gameworks

“We need smaller games that give us prestige and awards.” Excuse me?

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This article has been updated with additional context about Hi-Fi Rush’s development.

What you need to know

What you need to know

Just a single day after it came to light thatMicrosoft closed three game studios— includingHi-Fi Rushdeveloper Tango Gameworks — its president of game content and studios, Matt Booty, has reportedly said Xbox Game Studios needs more smaller games.

The report comes fromThe Verge, which notes that according to “internal remarks,” Booty told staff “we need smaller games that give us prestige and awards” during a town hall meeting held on Wednesday. That statement was surprising for many employees present, given that Tango Gameworks' Hi-Fi Rush arguably fits that description well.

Released in ashadow dropa little over a year after Tango launched Ghostwire: Tokyo in 2022, Hi-Fi Rush was a bold departure from the studio’s usual horror-focused games. Its addicting rhythm-based hack ‘n’ slash combat, energetic rock soundtrack, and colorful, vibrant world went on to attract over3 million players, though, and the game ended up taking home several awards from The Game Awards, the Game Developers Choice Awards, and the BAFTA Awards.

Microsoft’s vice president of Xbox games marketing Aaron Greenberg evenpublicly statedthat “Hi-Fi Rush was a break out hit for us and our players in all key measurements and expectations” when rumors of poor sales spread last April, which made Microsoft’s decision to kill the studio behind ityesterday all the more shocking. Booty’s comments today in the wake of that choice have left many similarly dumbfounded, and Tango Gameworks' creative director John Johanasfeels the same way:

Analysis: What are we doing here?

Analysis: What are we doing here?

Frankly, I can’t think of somethingmorebizarre and tone deaf to say the day after shuttering the studio that made one of the most well-received Xbox games in recent years. If Microsoft needs small award-winning games, than why would it firstturn down a Hi-Fi Rush sequel, then close the team that made it entirely?

In Booty’s email to staff announcing the cuts yesterday, he noted a “reprioritization of titles and resources” was necessary. A report fromBloombergalso revealed he said ZeniMax leadership was stretched too thin, and that the closures were intended to help move resources into other projects. However,Microsoft has ripped past earnings expectationswith a $21.9 billion net income, andhas become the world’s most valuable companyin 2024.

Somehow, I get the feeling there was a solution here that didn’t involve taking three studios behind the shed and laying off developers. And this isafterroughly 2,000 Microsoft Gaming employees were cut in January. What are we doing here, Microsoft?

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It’s worth noting that what’s considered a “smaller game"issubjective. Ina large interview with several Tango Gameworks developersshared by Xbox in October, it was revealed that Hi-Fi Rush was in development for a long time, and that while the team working on it for much of that time was small, there was eventually a “final sprint to pull people in to get it finished.” Audio director Shuichi Kobori also noted that he “would never call it a small project,” though did say “you might have a different view” if you compared it to games with higher budgets. As the screenshotted reaction above shows, though, game director John Johanas was bothered by Booty’s comments; if nothing else, what he said is unbelievably tactless.

Ultimately, in my view, Booty can say whatever he wants, but actions speak louder — and to me, Microsoft’s actions yesterday suggest it isn’t a safe place for developers to create the small, prestigious games that Booty says Xbox needs.

Brendan Lowry is a Windows Central writer and Oakland University graduate with a burning passion for video games, of which he’s been an avid fan since childhood. He’s been writing for Team WC since the summer of 2017, and you’ll find him doing news, editorials, reviews, and general coverage on everything gaming, Xbox, and Windows PC. His favorite game of all time is probably NieR: Automata, though Elden Ring, Fallout: New Vegas, and Team Fortress 2 are in the running, too. When he’s not writing or gaming, there’s a good chance he’s either watching an interesting new movie or TV show or actually going outside for once.Follow him on X(Twitter).