Tango Gameworks pitched a Hi-Fi Rush sequel before shut down, but Xbox felt its studios were ‘spread too thin’

Tango and Arkane Austin were closed to “free up resources elsewhere”

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Tango Gameworks reportedly pitched aHi-Fi Rushsequel before its shutdown.

Earlier this week (May 7), it was revealed thatMicrosoft would be shutting down four Bethesda Softworks studiosincluding Tango Gameworks and Arkane Austin, the team behindRedfall,Dishonored, andPrey.

Xbox Game Studios head Matty Booty reportedly told staff in an email that the decision was “grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds”. He added that the move is part of “reprioritization of titles and resources” that will see “a few teams will be realigned to others”.

Now in a new report fromBloomberg, sources who didn’t wish to be identified said that the Tango Gameworks was in the process of pitching a sequel. However, during a town hall meeting with ZeniMax staff on May 8, it’s claimed that Booty felt theMicrosoft’s studio system was “spread too thin” and likened it to “peanut butter on bread”.

With leaders across the division feeling understaffed, Booty said they decided to close Tango and Arkane Austin’s to “free up resources elsewhere”.

Booty later added that Arkane Austin’s closure was not connected to the performance of its latest multiplayer game,Redfall, whichunderperformedfollowing it’s launch last year. It’s also claimed that thestudio’s shut down comes just before the expected release date of a new major updatefor the game.

Tango Gameworks wasn’t alone in wanting to make a new game. Arkane Austin reportedly wanted to return to its roots with a new single-player “immersive sim”, such as a new entry in theDishonoredseries. Both projects were reportedly still in the pitching phase and were years away before the studio closures occurred.

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Following the news of the studios' closure, a newreport from The Verge found that Microsoft has been thinking about increasing the price of Xbox Game Pass again, specifically it’s Ultimate tier. The same report also suggested an internal debate has been ongoing within the company about whethernewCall of Dutygames should come to Xbox Game Pass.

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