Hi-Fi Rush & Prey Studios Closure: How The Industry Reacts To Major Xbox Decision

Game industry executives are currently on reprioritization duty: namely to close down entire studios for cost-efficient methods (and others) regardless of how well they perform. Last week, Take-Two closed down Roll7 (Rollerdrome, OlliOlli World) and Intercept Games (Kerbal Space Program 2), and now this week Microsoft has shuttered Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Games.

Arkane Austin was responsible for the new version of Prey, Dishonored games, and Deathloop. Tango Gameworks did The Evil Within series, Ghostwire Tokyo, and last year’s critically-acclaimed surprise hit Hi-Fi Rush. When the news broke, many fans, media folks, and developers were furious and heartbroken at Microsoft’s decision.

Here are a few quotes from industry folks, most of them scathing.

i loved every single game released by tango gameworks. this was to be the legacy of genius Shinji Mikami to nurture younger creators, now burnt down by Xbox https://t.co/myLIQyrCrT

— Gene Park (@GenePark) May 7, 2024

https://twitter.com/modorchaidhe/status/1787847302649917634

Saddened by the closure of Arkane Austin, Tango + Alpha Dog. Working with Arkane's brilliant team on Prey, I saw first hand the dedication and talent of every team member. You all are truly fantastic. No corporation owns your potential. Wishing you all the best for the future. pic.twitter.com/cxWjcDgq8P

— Mick Gordon (@Mick_Gordon) May 8, 2024

I love console gaming the most. I was happy to see Xbox support games like Hi-Fi Rush and Tango Gameworks and help to invest in the home console market in Japan by supporting Japanese developers. At TGS Phil said to me that they want to expand what they have in Japan and do more…

— Genki? (@Genki_JPN) May 7, 2024

Tango closed. Sad.

— ????? (@shinji_mikami) May 7, 2024

So in a few years when there’s a massive gap in the industry from all the games that were never made by the people who got laid off at the studios that were shuttered, who’s going to make your games? Where’s “shareholder value” going to come from when you’ve cut to the bone? https://t.co/z6VmNsqFbQ

— JC Lau (@drjclau) May 7, 2024

This quote is from May 4, 2023 – almost exactly one year ago. pic.twitter.com/3bw17g2u0i

— Ryan McCaffrey (@DMC_Ryan) May 7, 2024

???Completely gutted by this Lord @johnjohanas , it was an honor to have broken bread with you to discuss the gem that is Hifi Rush. You & the entire team deserve better than this outcome. https://t.co/E0CgkgDLux

— ???? ???????? (@LordCognito) May 8, 2024

This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.

— Dinga Bakaba 451 (@DBakaba) May 7, 2024

https://twitter.com/PatStaresAt/status/1787870260789740024

Kinda glad I’ve kept the Don Mattrick Xbox One follow-up video on the back burner because the Phil Spencer Era of Xbox has not stopped being a wild fucking ride. I’m not even sure how I’m going to cover it all now…

— SSFF | ??? Stop Skeletons From Fighting (@stopskeletons) May 7, 2024

Xbox + Bethesda: 2024 pic.twitter.com/DCxME3fpLQ

— Team Respawn (@TeamRespawnTV) May 7, 2024

The games industry has had some of its best years, and it deserves better than to be shot against the wall for it https://t.co/KTonsS8dhN

— Wamirul.bsk y @ Life's Loser's Bracket (@wamiruladlan) May 8, 2024

https://twitter.com/KrisWolfheart/status/1787924647435976862

Unfortunately, you learned absolutely nothing, Xbox. pic.twitter.com/3WLPXRTzFC

— Klobrille (@klobrille) May 7, 2024

As an aside, this news was also followed up with a tweet from ex-Blizzard CEO Mike Ybarra about Xbox lead Phil Spencer’s predicament and the fallout of the decision.

https://twitter.com/Qwik/status/1787914959541911727

He clearly did not read the room.

Mike, I have a lot of fondness for Phil and don’t doubt he’s incredibly bummed about this, but CEOs can handle some “shots” amidst people having their lives destroyed. Your sympathetic posts should solely be directed at those who’ve lost their jobs.

— Alanah Pearce (@Charalanahzard) May 7, 2024

I like Phil Spencer as much as I've liked any game executive of my lifetime and I think it's both incredibly wrongheaded and borderline disrespectful to the people who lost their jobs today to consider his hypothetical hurt feelings as something worth remarking upon right now. https://t.co/Ctl9fQ2DFK

— Alex Navarro (@alex_navarro) May 7, 2024

Moon Studios CEO (Ori series, No Rest For The Wicked) Thomas Mahler did say it best: being at both sides means you can sort of see why Xbox and Microsoft do the things they do: the publisher to let studios make more beloved products with efficient setup. Though to be fair it’s not a good look for them in the meantime.

I've been in the industry long enough now to have seen how things unfold from both sides and I'm honestly not a fan of the outrage culture we've created these days.

Hear me out for a second. I know it's of little comfort for people who have lost their jobs today, but I think…

— thomasmahler (@thomasmahler) May 8, 2024

Still, our hearts go out to those who lost their jobs and livelihoods.