Seattle, Washington – Tango Gameworks, a renowned video game studio based in Seattle, was in talks to create a sequel to their popular game Hi-Fi Rush. The studio had plans to expand its team before unexpectedly shutting down, according to recent reports. The closure of Tango Gameworks, along with Arkane Austin, the developer behind Redfall, was a part of cost-cutting measures initiated by Xbox leadership who believed that the studio system was becoming overextended.
While details about the proposed Hi-Fi Rush sequel remain scarce, Tango Gameworks was actively seeking new hires despite the departure of their founder, Shinji Mikami, in 2023. Xbox had previously hailed Hi-Fi Rush as a successful title that resonated well with players and exceeded expectations in various aspects.
In addition to Tango Gameworks, Arkane Austin was also exploring the development of a new single-player immersive sim game, in line with their previous work on the acclaimed title Prey. Unfortunately, both studio projects were still in their early pitching stages and were considered to be years away from completion before the closures were announced.
The decisions to shut down Tango Gameworks, Arkane Austin, and other studios like Alpha Dog Games were met with criticism and disappointment from industry insiders and developers alike. Xbox executives cited the need to streamline operations and focus on fewer projects as the primary reasons for the closures, echoing sentiments shared by ZeniMax studios head Jill Braff and Xbox’s president Matt Booty.
The gaming community has been rocked by a series of layoffs and studio closures throughout 2023 and 2024, with Xbox’s recent cost-cutting measures adding to the industry’s uncertainty. The future of Xbox remains uncertain, with reports of slowing Game Pass subscriptions and declining Xbox sales causing some concern within the gaming industry.
As developers grapple with the aftermath of the studio closures, former employees like Harvey Smith from Arkane Austin have expressed their love and support for their colleagues. The impact of these closures reverberates through the industry, highlighting the challenges faced by developers in an ever-evolving and competitive landscape.