Strange things are happening at Microsoft. Matt Booty, head of Xbox Game Studios, held a meeting to discuss the unit's future goals.
“We need smaller games that give us prestige and awards,” Booty told employees.
This happened the day after Microsoft closed several studios, including Tango Gameworks — the developer of the small, prestigious, and popular game Hi-Fi Rush.
Hi-Fi Rush was a pleasant surprise last year, receiving many positive reviews and praise for its innovation and charm. The rhythm action game featured music from The Black Keys and Nine Inch Nails, with an art style reminiscent of hyper-stylized PS2 era games. Just 4 months after its release, Hi-Fi Rush attracted 3 million players. The game received awards from the Game Award, Game Developers Choice, and BAFTA.
Although Microsoft does not share sales data, they were obviously pleased with the game. Aaron Greenberg, vice president of game marketing for Xbox, wrote that Hi-Fi Rush "was a real hit for us and our players by all key metrics and expectations." However, this did not save Tango Gameworks from closure.
Currently, small single-player games like Hi-Fi Rush are experiencing a surge in popularity. Therefore, it is not surprising that Microsoft is aiming to create "smaller games." It is strange that the company is closing a studio that has already created such a popular project and was preparing to release its sequel, as reported by Bloomberg.
But that's not all. Bloomberg also reports that Microsoft is asking several current ZeniMax team members, including producers and quality testers, to sign voluntary severance agreements. This happened after the closure on Tuesday of three former Bethesda-ZeniMax game development studios, as well as the merging of another team into ZeniMax Online Studios. It is not specified how many ZeniMax team members agreed to these severance agreements. Microsoft has yet to disclose how many team members lost their jobs on Tuesday.
At the same time, Matt Booty stated at the meeting that the ZeniMax division with its previous nine studios was thinly spread, like "peanut butter on bread," and Microsoft felt it was time to close some studios to better utilize resources.
Jill Brath, the current head of the ZeniMax division, stated at the meeting that “it is difficult to support 9 studios around the world with a modest central team with a constantly growing set of tasks.”
Additionally, it is reported that Microsoft is also considering other measures to increase game revenue, including raising prices for the Xbox Game Pass Ultimate service and possibly offering more games, such as Senua's Saga: Hellblade II, for the Sony PlayStation 5 console.
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