Microsoft’s major restructuring of its Xbox game development studios has dealt another blow, with reports emerging that several cancelled projects were further along than previously known. According to Bloomberg’s Jason Schreier, Tango Gameworks was in the midst of pitching a sequel to its well-received Hi-Fi Rush when the studio’s closure was announced last week.
The Tokyo-based Tango, best known for the Evil Within survival horror series, had launched the rhythmic action game Hi-Fi Rush to critical acclaim in January. However, the fledgling pitch process for a follow-up title was cut short by Xbox’s decision to shut down the studio alongside Arkane Austin and others.
Schreier reports that Arkane Austin was similarly preparing to pitch a new single-player “immersive sim” game, potentially a new entry in the Dishonored series which Arkane is renowned for. The nature and scope of this project remain unclear.
The scrapped sequel and new game pitches add context to the surprise studio closures, which impacted teams staffing up for future development according to Schreier’s sources. At a recent internal town hall, ZeniMax Media head Jill Braff cited the goal of focusing Bethesda on “fewer bigger projects” as rationale for the restructuring.
“It’s hard to support nine studios all across the world with a lean central team with an ever-growing plate of things to do,” Braff reportedly stated.
The upheaval arrives as Microsoft is rumored to be planning further layoffs across the Xbox organization. While details are limited, the cuts may stem from a re-evaluation of the Xbox Game Pass strategy which had previously prioritized a steady pipeline of new games to feed the subscription service.
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Schreier notes that gaming subscription spending grew by just 1% over the past year, potentially prompting a re-focusing on AAA blockbusters over smaller Game Pass titles from the likes of Double Fine and Ninja Theory which were acquired under the previous model.
As Microsoft calibrates its game studio approach, the impacts continue to reverberate through the ranks of its developers. What focused new direction the Xbox Games Studios will settle remains to be seen, but it has already meant unrealized ambitions dashed on the cutting room floor.
