Tang Gameworks was in the process of pitching a Hi-Fi Rush sequel and wanted to hire additional staff before its sudden closure, according to a new Bloomberg report.
The report, which sheds additional light on the closures of Tango Gameworks and Redfall developer Arkane Austin, claims that Xbox leadership felt that the overall studio system was "spread too thin," with president Matt Booty reportedly likening it to "peanut butter on bread." IGN first reported the closures on Thursday.
While little was revealed about the proprosed sequel, Tango Gameworks was reportedly seeking to hire additional staff despite the departure of founder Shinji Mikami in 2023. Xbox previously called Hi-Fi Rush a "breakout hit for us and our players in all key measurements and expectations."
Tango Gameworks wasn't the only studio working on a new game. Arkane Austin apparently wanted to return to its roots with a new single-player immersive sim, according to the report. Arkane Austin is famous for its work on Prey, which became a cult favorite after a difficult launch in 2017.
Both studios were ultimately shut down alongside Mighty Doom developer Alpha Dog Games, while Roundhouse Studios was absorbed by ZeniMax Online Studios. Xbox reportedly isn't finished cutting costs as it offers severance to ZeniMax employees who opt to accept a voluntary buyout.
ZeniMax studios head Jill Braff and Matt Booty both attributed the closures to desire a to consolidate and pure more focus on few projects.
"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 said in a town hall meeting. "I think we were about to topple over."
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Kat Bailey is IGN's News Director as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.
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