'We need smaller games,' says Xbox's Matt Booty, right after Microsoft shut down the studio that made Hi-Fi Rush—and was reportedly about to pitch a sequel

pcgamer.com:

This one's a head-scratcher. Less than a day after shutting down both Arkane Austin and Tango Gameworks—the latter of which created Hi-Fi Rush—Microsoft's Matt Booty held a town hall wherein he proclaimed: «We need smaller games that give us prestige and awards.»

That's as per a report shared by The Verge. I won't start rapid-firing quote tweets here because there are so damn many, but dipping into Twitter, you'll see widespread bafflement to the tune of 'wait, didn't you just kill the studio that did that for you?'

More baffling still is (as per an internal email from the man himself at the time of said closures) these decisions were, quote: «Grounded in prioritising high-impact titles and further investing in Bethesda's portfolio of blockbuster games.» The messages are mixed, but blending together like oil and water.

Hi-Fi Rush released to wide acclaim, but it carried with it the vibe of a small-scale title. A story that didn't overstay its welcome, a unique concept executed flawlessly, and a shadow-drop onto Game Pass praised as a «break out hit for us and our players in all key measurements and expectations» from Microsoft itself.

In terms of awards, Hi-Fi Rush did well, claiming Best Animation from BAFTA, Best Audio Design from The Game Awards, and a sterling track record of nominations to boot. Especially in a year where Baldur's Gate 3 swept basically every major ceremony. What's more, according to a Bloomberg report, Xbox called curtains on Tango Gameworks right before the studio was slated to pitch the game's sequel—as per anonymous comments supplied to Jason Schreier. 

Let's get this all out on the corkboard, then:

But hey, in the interest of fairness, we should at least interrogate the statement itself.

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