Xbox is supposedly looking for more "smaller games that give us prestige and awards" like Hi-Fi Rush, a contrasting outlook just a day after it shut down the game's development studio.
Xbox Game Studios head Matt Booty remarked that its parent company Microsoft needs more breakout hits to boost Xbox's bottom line, The Verge reported.
Booty, just a day prior, announced the closing of Hi-Fi Rush's developer Tango Gameworks and three more game studios under Bethesda.
Hi-Fi Rush was among Xbox's breakout hits last year, winning the 2024 BAFTA Games Award for Animation and Best Audio Design during the 2023 The Game Award.
Aaron Greenberg, Xbox's marketing vice president, even lauded the game and Tango Gameworks last year for reaching "all key measurements and expectations."
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.
— Aaron Greenberg 🙅🏼♂️💚U (@aarongreenberg) April 21, 2023
Insider reports, however, paint a different scenario, noting that Xbox executives are not as happy with Hi-Fi Rush's reception after the game "didn't make the money it needed to make."
Hi-Fi Rush 2 was Pitched Before Studio Shutdown
It hurts more for many fans of the game that a Hi-Fi Rush sequel was being pitched shortly before Tango Gameworks was shut down.
According to Eurogamer, Tango was in the pitching process for Hi-Fi Rush 2, building up its frenetic rhythm-action gameplay, when they received the notice that the studio was closing.
Arkane Austin, another studio hit by the closedown, was reportedly proposing a potential new Dishonored game when Microsoft decided to scrap the studio's Texas branch.
Now, its main office in Lyon, France, is expected to handle future development projects left by its Austin studio while the new Dishonored title is most likely to be thrown to the back burner.
The decision is expected to cause several layoffs across the affected game studios.
Xbox Struggles to Recover from Slower Consoles Sales
Even before the Booty's statements, Xbox has been pushing for another "lightning in a bottle" amid struggles to push out of lower sales growth.
Last quarter's report indicates that its consoles have recorded lower sales compared to previous years' records as Xbox finds a hard time encouraging players to stay on the console.
