After Closing Studios, Microsoft Says It Needs Smaller Games For Prestige and Awards

After the devastating news of Microsoft shutting down 4 studios – Arkane Austin, Alpha Dog Studios, Tango Gameworks, and Roundhouse Games, a town hall meeting was held by Matt Booty, head of Xbox Game Studios. As revealed by The Verge, for the future goals of the company, he reportedly said, “We need smaller games that give us prestige and awards.”

Speaking of prestige and awards, Hi-Fi Rush, developed by Tango Gameworks was awarded The Game Award for Best Audio Design (2023) as well as BAFTA Games Award for Animation (2024) and is greatly appreciated by critics and players alike.

Moreover, in a tweet @aarongreenberg (VP, Xbox Games Marketing at Microsoft) said back in 2023, “Hi-Fi RUSH was a breakout hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.”

Hi-Fi RUSH was a break out hit for us and our players in all key measurements and expectations. We couldn’t be happier with what the team at Tango Gameworks delivered with this surprise release.

— Aaron Greenberg 🙅🏼‍♂️💚U (@aarongreenberg) April 21, 2023

However, sales might be a different story. Some reports suggested the game didn’t meet sales expectations, possibly due to its shadow drop on Game Pass with no marketing as such.

Based on this, the statement has been surprising for employees as well as gamers. The news of these studio closures has caused backlash from Xbox fans and the overall sentiment of gamers towards Xbox’s next direction isn’t too positive at the moment.

While the closures for “reprioritization of titles and resources” were a blow to some developers, Microsoft hopes the move will strengthen their overall Xbox game portfolio in the long run.

You can check out the email that was sent to the staff by Matt Booty right here. As per the details, Arkane Austin (Redfall) will close with some members of the team joining other studios for their projects. Alpha Dog Studios (Mighty Doom) closes as well as Tango Gameworks. The team of Roundhouse Games will be joining ZeniMax Online Studios.