Xbox says it needs smaller, prestigious games right after killing the studio behind the small, prestigious Hi-Fi Rush

In a May 8 town hall meeting, Xbox Games Studio head Matt Booty told employees that Microsoft needs smaller-scale games that can earn the company prestige and awards. This came just one day after the shutdown of Tango Gameworks, which was responsible for a game that met those exact metrics: Hi-Fi Rush.

Booty’s exact comment was, “We need smaller games that give us prestige and awards,” which was then shared by employees in attendance with The Verge. I’ve seen some debate about whether Hi-Fi Rush can be considered small, since development on it began long before Microsoft bought out Tango Gameworks alongside the rest of parent company ZeniMax Media in 2021, with the game launching in early 2023. However, it’s significantly cheaper than Microsoft’s triple-A fare, only costing $29.99 / £26.99, and is a far shorter experience. According to HowLongToBeat, you could complete Hi-Fi Rush‘s story in less than a day.

At the very least, Hi-Fi Rush is a prestigious title. Aside from it being a critical darling and easily the best Xbox exclusive of 2023, it’s won a handful of awards, including Best Audio Design at the 2023 Game Awards. Just last month, it won the award for Animation at the BAFTAs, beating the likes of Super Mario Bros. Wonder and Spider-Man 2. While Microsoft has never shared exact sales figures, it was apparently happy with Hi-Fi Rush‘s overall performance, with Xbox Games Marketing VP Aaron Greenberg saying it “was a break out hit for us and our players in all key measurements and expectations” a few months after its launch.

It’s hard to be anything but baffled at Booty’s comment, when it sounds like Hi-Fi Rush was exactly what Microsoft wanted and needed, yet it killed the studio that made it. To rub extra salt in the wound, a separate Bloomberg report claims Tango was in the process of pitching a Hi-Fi Rush sequel before it was shut down.

The decision to close Tango Gameworks, alongside a few other Bethesda studios, has already severely damaged Microsoft’s image in the eyes of fans, and additional information like this will only make things worse. Not to mention, it’s bound to have left other Microsoft subsidiaries nervous about their own futures, since the company has demonstrated it’s willing to shut a studio down even if it makes a successful game.