Unveiling the Ripple Effects: How Xbox's Strategic Shifts Impacted Tango Gameworks and Proposed Sequels

The team behind Hi-Fi Rush was in the midst of preparing to propose a follow-up to their well-received rhythmic action title when Microsoft decided to cease its operations, a recent exposé reveals.

Based on a new examination by Bloomberg's Jason Schreier, who referred to insiders knowledgeable about Xbox's strategy, the termination of operations impacted the Tokyo-based Tango Gameworks. This studio, previously responsible for the critically acclaimed Hi-Fi Rush, was reportedly moving towards proposing a sequel, according to sources who wished to remain anonymous due to the confidential nature of the details.

This investigative piece also hinted that "Arkane had intentions to delve back into its foundational genre with a proposal for a novel single-player 'immersive sim' title, potentially a fresh installment in the Dishonored sequence." The exact source of this proposition—whether it would have emerged from the now-closed Arkane Austin, its affiliate Arkane Lyon, or a collaboration of the two—remains uncertain.

Via social media, Schreier indicated that the closure decision stemmed from a preference to concentrate on advancing confirmed projects rather than sustaining entities in the early stages of developing unapproved and potentially costly endeavors. This was among several reasons mentioned.

The narrative further emphasizes upcoming reductions within Xbox, though specifics on potential layoff numbers or further shutdowns were not provided. The decision to close Tango and Arkane Austin forms a key component of an extensive cost-cutting strategy that continues to unfold. Notably, this move comes shortly after Xbox disclosed the dismissal of nearly 2,000 employees.

The sudden shift in Xbox's stance, from previously lauding Hi-Fi Rush as a significant success to the current series of closures and cancellations, has left many questioning the motives behind these decisions.