Nothing is going well in the Xbox camp. The gaming industry as a whole has been rocked with several rounds of layoffs, leading to many feeling companies are not doing everything in their power to safeguard their employees. Recent news on Microsoft’s front is not going to help change that perception.
More closures are happening, and one studio in particular that has been affected is going to disappoint many gamers. What’s worse, the studio was trying to pitch for a sequel to its game that might never see the light of day.
Xbox Announces Surprising Shutdown of Several Development Studios
The shutting down of a studio or team is never a good sign. Not only does it signal internal issues with the larger company, but it also means several people would be losing their livelihoods. It also often comes as a shock to the employees, who are given little to no notice of the decision.
The same can be said for Microsoft’s decision to shutter three subsidiaries and absorb a fourth on Tuesday. The shutdown has also affected the Tokyo-based Tango Gameworks, developers of the 2023 fan-favorite Hi-Fi Rush. Fans of the game are going to be even more disappointed to know the developers were in the process of pitching for a sequel before the closure was announced.
Hi-Fi Rush, a rhythm-based action-adventure title, was released to favorable reviews and reception in 2023. Sitting at an 8.9 User Review rating on Metacritic, the game offers fast-paced combat and a colorful art style many found captivating. The game is also one of the four that have made the jump to PlayStation consoles as a way to build up the franchise, according to Phil Spencer.
Knowing that a sequel was planned and already in the pitch stage only for the development team to be shut down is not going to help the company’s image in the gaming community. However, Tango Gameworks is not the only studio that has been shut down, as stated in the Bloomberg article.
Shutdowns Due to Resource Allocation and Restructuring
Matt Booty, Head of Xbox Game Studios, addressed the shutdowns in a very broad manner during a town hall meeting with the ZeniMax team. He claimed the teams were spread too thin, which prompted the decision. Along with Tango Gameworks, even Arkane Austin, the developer of Prey, has been affected, leading many gamers to call for a boycott of Xbox.
The head of ZeniMax studios echoed Booty’s sentiments and expressed her desire for the restructuring to bring more focus to select projects. However, shutdowns and layoffs have become worryingly frequent within the industry. In February alone, Microsoft laid off 1,900 employees, mostly from Activision Blizzard.
Xbox’s current strategy appears to be to focus on its Game Pass service. The acquisition of multiple smaller studios, along with major acquisitions, are all in line with the company’s strategy to bring more offerings to its service. However, the service has not seen the massive growth Phil Spencer expected, which may mean the company needs a new angle to approach.
What do you think of the decision to shut down studios to reallocate resources? Let us know your thoughts in the comments below!
