Xbox Game Studios head says Microsoft needs 'smaller games that give us prestige and awards' one day after shutting down Hi-Fi Rush studio Tango Gameworks

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Xbox Game Studios head Matt Booty has reportedly said Microsoft needs smaller games that will earn it «prestige and awards» a day after shutting down Tango Gameworks.

Following the news earlier this week (May 7) that Microsoft would be shutting down four Bethesda Softworks studios, including Tango Gameworks and Arkane Austin, Booty, alongside head of ZeniMax studios Jill Braff, held a town hall meeting with ZeniMax employees to discuss the division's future plans.

According to a report from The Verge, Booty told staff on May 8, «We need smaller games that give us prestige and awards.» 

This statement came from internal sources close to the situation who also remarked how surprised they were by the goal since Microsoft had recently shut down Tango Gameworks, the studio behind the critically acclaimed rhythm-action game Hi-Fi Rush.

During the same meeting, Booty reportedly praised Hi-Fi Rush but didn't provide clarification on Microsoft's recent decision to shutter Tango Gameworks. 

A similar sentiment was shared last year following the game's launch, with Aaron Greenberg, vice president of Xbox games marketing, writing on X (formerly Twitter) that, "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."

Elsewhere, it was also reported during the same town hall meeting that Tango Gameworks had pitched a sequel to Hi-Fi Rush before its closure, alongside Arkane Austin who wanted to return to its roots and was in the process of pitching a new single-player game, such as a potential new Dishonored entry.

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Booty later said that he felt Microsoft's studio system was «spread too thin» like «peanut butter on bread» and decided the closure of Tango and Arkane Austin would «free up resources elsewhere».