Strange things are happening at Microsoft: the company is closing studios that created successful small games, and at the same time demanding the development of more “prestigious” projects of a smaller scale.
New goals
Break with tradition
Recently, the head of Xbox Game Studios Matt Booty held a meeting where he stated the need to develop "smaller games that give us prestige and rewards." The announcement comes a day after the closure of several studios, including Tango Gameworks, creators of the successful and innovative game Hi-Fi Rush.
Unexpected success
Hi-Fi Rush was a pleasant surprise last year, receiving many positive praised for its innovation and charm. The rhythmic action game with music by The Black Keys and Nine Inch Nails, stylized as hyper-realistic games of the PS2 era, attracted 3 million players in just 4 months and was awarded the Game Award, Game Developers Choice and BAFTA. Microsoft was clearly pleased with the project, which did not save Tango Gameworks from closure.
New Trend
Small single-player games like Hi-Fi Rush are seeing a surge in popularity these days. Therefore, Microsoft's desire to create "smaller games" is understandable. However, the decision to close the studio, which released a popular project and was preparing for its continuation, is puzzling.
ZeniMax Restructuring
In addition, Microsoft offered voluntary severance agreements to a number of ZeniMax employees, including producers and quality testers. This happened after the closure of three former Bethesda-ZeniMax studios and the merger of ZeniMax Online Studios. It is unknown how many people agreed to be laid off, as well as the total number of laid-off employees.
Booty said that ZeniMax's previous nine studios were "thinly spread, like peanut butter on bread," and Microsoft felt it necessary to close some of them to use resources more efficiently. ZeniMax chief executive Jill Braff added that "it's difficult to support 9 studios around the world with a modest central team."
New sources of revenue
Microsoft is reportedly considering other ways to increase gaming revenue, including raising the price of its Xbox Game Pass Ultimate service and offering some games such as Senua's Saga: Hellblade II for the Sony PlayStation 5 console.
Glossary
- Microsoft is the largest multinational corporation producing software software, developer of the Xbox game console.
- Xbox Game Studios is a division of Microsoft that develops and publishes games for the Xbox.
- Tango Gameworks is a Japanese game development studio founded by Shinji Mikami, closed by Microsoft in 2024.
- Hi-Fi Rush is a rhythmic action platformer developed by Tango Gameworks and released in 2023.
- ZeniMax Media is an American holding company that owns a number of game studios, including Bethesda Softworks, which was acquired by Microsoft in 2020.
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Discussion of the topic – Microsoft is looking for new hits like Hi-Fi Rush after the closure of the development studio
Microsoft has closed Tango Gameworks, the creators of the hit Hi-Fi Rush, but plans to look for more similar projects. The company offered severance agreements to ZeniMax employees.
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Diego
What a turn of events! It seems that Microsoft has moved away from its strategy of producing large AAA projects in order to focus on small but innovative games🤯. On the one hand, this could lead to more diverse and creative games, but on the other hand, staff layoffs and studio closures will not please anyone😕.
Sophia
Their decision to increase the number of smaller games makes me very excited! Small indie studios often have great ideas, but due to lack of resources, many of them are never implemented📢. Now, with the support of Microsoft, developers will be able to bring their ideas to life!
Gertrude
Bullshit! Nobody needs these newfangled things 🙅♀️. In the old days they made real toys, with a good plot and graphics. And now what? A bunch of pixels and fashionable music... Ugh, the thought makes me sick!😤
Luca
Gert, you are grumbling the old fashioned way as always🧓. Small games are a great opportunity for young talent to shine. Hi-Fi Rush has proven that such projects have huge potential👏. The main thing is that Microsoft manages its resources wisely and supports the best ideas.
Juliette
I can't help but agree with Luka🙌. Low-budget games are a kind of vanguard of the industry, an impetus for the development of new mechanics and ideas. Remember how indie platformers brought back the fashion for complicated 2D projects after the dominance of AAA shooters 🎮.
Anton
Personally, I'm looking forward to Microsoft's experiments. They have enough resources to weed out bad ideas while still helping talented developers spread their wings💡. Perhaps it will be small teams who will find the formula that will turn the gaming industry upside down!
Anya
I am also optimistic about the future🤩. Large studios often mark time, releasing the same type of projects, but indie teams break established patterns and bring a fresh spirit to the industry. I hope Microsoft will prioritize correctly and support the most promising initiatives🚀.
Pierre
Maybe I’m a little conservative, but I’m still a little wary of this Microsoft strategy😕. On the one hand, small games are really something new. But on the other hand, they are taking a serious risk by closing promising studios like Tango. Let's hope the experiment pays off 🤞.