Hello, my wonderful followers! Today, Microsoft made a surprising announcement just one day after shutting down four of its game studios. Matt Booty, head of Xbox Game Studios, shared the division’s future goals in a town hall meeting with employees.

One of the key points Booty emphasized was the need for smaller games that could bring prestige and awards to Microsoft. This statement came shortly after the closure of Tango Gameworks, the Japanese developer behind the critically acclaimed title Hi-Fi Rush.

Hi-Fi Rush, a rhythm action game featuring music by The Black Keys and Nine Inch Nails, garnered praise for its innovation and charm. Within months of its release, the game attracted 3 million players and won several prestigious awards during the 2023–2024 season.

Tango Gameworks’ success with Hi-Fi Rush marked a departure from its usual survival horror offerings like The Evil Within series. Xbox head Phil Spencer has expressed his desire to give studios the creative freedom to explore new genres and push their boundaries.

In an effort to bring more Japanese exclusives to Xbox, Microsoft had high hopes for titles like Hi-Fi Rush. However, with the studio now closed, questions arise about the future of such collaborations and projects.

The gaming industry is currently witnessing a surge in popularity for small single-player games like Hi-Fi Rush. Titles developed by individual creators, such as Balatro and Manor Lords, have seen significant success in recent months.

Despite Tango Gameworks’ success with Hi-Fi Rush and its plans for a sequel, the studio’s closure raises doubts about Xbox’s ability to capitalize on innovative and highly praised games. Microsoft’s decision to shut down Tango Gameworks leaves many wondering about the missed opportunities and untapped potential in the gaming market.