No Leaf Clover – Hi-Fi Rush Studio ‘Tango Gameworks’ Shuttered
In the year 2023, the Xbox platform was in a dark spot. Following a year with minimal releases from first party studios in 2022 and many roadblocks in the Activision/Blizzard purchase, the hardcore consumer base lost confidence in the platform. But that all changed when Tango Gameworks kicked the doors down in January 25th, 2023. During the first Developer Direct with Hi-Fi Rush,
Microsoft shocked the world with a shadow drop of all things. The title delighted and many celebrated Tango’s departure from horror. It was a game that wore its heart proudly on its sleeve while having a lovable protagonist and a cute cat mascot that could’ve taken the world by storm.
But Microsoft failed to see the potential in both Tango and Hi-Fi Rush as an IP. They shuttered the studio alongside Arkane Austin and Alpha Dog Games.
History of Tango Gameworks
Shinji Mikami has a long history in the gaming industry. From working on titles like Goof Troop on the SNES to the horror legend that is Resident Evil 4. His name, as a result, speaks for itself. He joined other Capcom developers to found Platinum Games, following the demise of Clover Studios. There, he directed Vanquish. The title, while not a horror game, melded the third person perspective of Resident Evil 4 and the shooting of Gear of War with a focus on fast movement. It was a beloved game and following that release, he left Platinum Games to found Tango Gameworks in 2010. The studio, in the same year of being founded, was acquired by Zenimax.
Deciding to lean on their horror roots, the studio made the critically beloved Evil Within franchise. Following the two Evil Within games, the studio then went to work on Ghostwire Tokyo, which went through its own development woes.
The title released as a one-year exclusive on the PlayStation 5 in 2022 and was a one-of-a-kind experience. Using a first-person perspective, unique combat system, and offering an authentic Tokyo to explore. Many enjoyed it and, in the future, the game should become a cult classic. It eventually released on the Xbox Series X|S consoles a year later.
Hi-Fi Rush
Beginning development in 2018, Hi-Fi Rush was directed by John Johanas. He also directed Evil Within 2 prior, making this a very interesting game for the studio. While Tango had former Capcom, Clover Studio and Platinum Games developers within it. They had focused only on horror games under Bethesda. Tango ran with the idea of a rhythm-based action platformer where not only the world reacted to the beat but the combat system as well.
When Microsoft purchased Zenimax in 2020 and finalized the deal in 2021, the game fell in Xbox’s lap. The company, publicly making strides to get Japanese talent to work with them, finally had a Japanese developer in-house. Despite obligations preventing the studios at the time upcoming Ghostwire Tokyo releasing on Xbox platforms, Hi-Fi Rush launched exclusively on the Xbox Series X|S and PC in 2023.
The game did not have a marketing cycle at all, with the decision made to drop Hi-Fi Rush surprisingly into Xbox Game Pass during the Xbox Developer Direct of that year. Upon release, the title got universal critical acclaim and multiple awards. The game eventually made its way to PlayStation 5 a year later.
Studio Closure
Surprising the entire gaming industry, despite the studio’s success and potential for expansion, Tango Gameworks was shuttered. They joined other fallen Bethesda Studios such as Arkane Austin and Alpha Dog Games losing their livelihoods overnight. Tango was set to begin pitching a sequel to the title. They had also requested additional staff to begin production on the title. In addition, FTC leaks in 2023 stated that a sequel to Ghostwire Tokyo was in some stage of development as well. But both efforts ended with the studio’s demise. The decision wasn’t one long in the making either, with the game’s director commenting on a promising future a month before the studio’s closure.
“We have a good situation in our studio, where we were granted a lot of creative freedom and were able to take risks,” said Johanas. “I know some studios are not afforded that opportunity.
In addition, supporting the idea these closures were potentially an overnight decision, is Xbox President Sarah Bond publicly celebrating Tango not even two months ago and looking forward to ‘many years’ for the studio. Xbox’s leadership having muddled and confusing comments trying to justifying the studio’s closure following the announcement does not help matters.
Xbox Leadership Failing Tango Softworks
The first comments surrounding the studio closure come from Matt Booty, who held a Town Hall meeting within Microsoft. Bloomberg reports the following information gained from the town hall:
During a town hall with ZeniMax staff on Wednesday morning, Xbox president Matt Booty praised Hi-Fi Rush but did not specify why the company had shut down the development studio behind it, according to three people who were in attendance.
Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said.
But during this town hall, he also said the following comment according to IGN;
The boss of Xbox Game Studios reportedly told Bethesda staff “we need smaller games that give us prestige and awards” just a day after shutting down Hi-Fi Rush developer Tango Gameworks.
While it is clear Hi-Fi Rush is a very visually striking game, the title is no Last of Us. The game is a linear eight-to-twelve-hour action title paying homage to games like Devil May Cry and Dreamcast-Era titles. And considering the critical success of the title, Xbox had exactly what they were looking for. But they kicked it away.
Xbox President Commenting On Closures
Also not helping the situation is Xbox President Sarah Bond who made a response recently. While commenting on major efforts Xbox is making in the future, such as advancements in AI and a mobile storefront, she was asked about the studio closures. She stated the following:
“One of the things I really love about the games industry is that it’s a creative art form. It means that the situation, and what success is for each game and each studio, is also really unique. There is no one-size-fits-all to it for us,” she told Bloomberg. “We look at each studio, each game team, and we look at a whole variety of factors when we’re faced with making decisions and trade-offs like that. But it all comes back to our long-term commitment to the games we create, the devices we build, the services, and ensuring we’re setting ourselves up to be able to deliver on those promises.”
To say this answer didn’t satisfy is a great understatement. She comments on how every game’s success is judged differently. Though that defeats the entire point of Game Pass as a platform. A major reason many developers like Double Fine, Ninja Theory, and Compulsion agreed to be purchased by Microsoft was because they believed in this vision. This idea of not worrying about meeting sales targets and just “make the games you want to make”. It’s a dream, I imagine, every developer has.
It’s why the indie space is thriving and why Game Pass has so many quality indie titles monthly. But once you look at sales metrics, like how a publisher like Activision/Blizzards views releases like Call of Duty, the game changes. But with Xbox needing return on investment and rising costs of game development. Microsoft’s vision of Game Pass might not be viable in 2024.
Future in Japan
Xbox has been making many strides to get support from Japanese developers and publishers. According to the FTC leaks and public comments made over the years they expressed interest in acquisitions for publishers like SEGA and Square Enix.
How could any publisher willingly be purchased if Microsoft is going to shutter studios for lackluster sales?
Hypothetical Situations
If Microsoft owned Square Enix, for example, what would have happened to Luminous Productions following the release of Forespoken? That game did not do well, and the end result was that studio being folded into other divisions within the publisher. But the developers lived on, instead of losing their livelihoods.
As a passionate fan of Sonic, I shudder to imagine if Microsoft owned SEGA. While franchises like Persona and Yakuza would be fine with sales successes on other platforms and bolstering engagement with Game Pass integration, what about Sonic?
While the franchise is in a better spot now, it had many failings to get to where it is today. Following a release like Sonic 06 or even a quality but flawed game like Sonic Unleashed, Sonic Team would have likely been shuttered outright. And while I greatly enjoyed Sonic Frontiers, the game didn’t do the sales numbers of a Call of Duty. Would a modest success like that be enough to keep Sonic Team’s lights on?
It also does not help with the Switch 2 reportedly running specs rivaling the Xbox Series S. Developers in Japan could potentially abandon the Xbox platform in droves again, like we have seen for certain titles from Square Enix, and Capcom as of late once that console releases. Even if it’s a new console, the success for the Switch ensures sales from consumers on the new console.
Xbox may want to continue making strides in the region, hinging on their current partnership with SEGA/Atlus. But with moves like shuttering Tango Gameworks, I genuinely wonder how long that lasts.
Xbox The Publisher
It is no secret that Xbox as a platform is changing before our very eyes. With that change, being the decision to become a publisher. Not unlike what became of SEGA following the Dreamcast’s death. Unlike that platform, the Xbox console still exists but for how long?
When you begin shuttering studios, or “trimming the fat” so to speak, you are streamlining your operations. When the closures were announced, Matt Booty stated the following comment;
We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.
What does this mean? It means Fallout, Elder Scrolls and Doom will be the pillars for Bethesda. Not unlike how Halo, Gears of War and Forza are for Xbox proper or how Activision is defined by Call of Duty. Big IP like the ones mentioned, require a lot of manpower to produce. If the entirety of Activision’s studios developing Call of Duty proves anything.
It also means that there is not a need for smaller, art house studios if you truly intend on becoming a AAA publisher. Microsoft Gaming, so to speak. When the metric changes from player engagement to sales numbers, smaller games are at far more risk. If a beloved, critically acclaimed game like Hi-Fi Rush can’t save a studio, what message is that sending?
The Boogieman – Xbox Studios Future
Smaller developers that let themselves be purchased by Xbox, under the assumption they would be safe due to the Game Pass model, have to be terrified right now. Especially a studio like Ninja Theory, who has Hellblade 2 not even two weeks away at the time of writing this. Marketing hasn’t even truly began and if it has? It’s not nearly on the level of a Fallout or Starfield.
That of itself is baffling considering Hellblade 2 was used to market the Series X. The game was revealed alongside the console during the 2019 Game Awards, making a bold promise that they believed in the project by linking it with their new console. A bold, effort like this being what you reveal the console with sent a message.
A message was sent with games like Hi-Fi Rush, and we know that developer’s fate was studio closure. While the game could potentially find success on PlayStation 5 in the future, when it releases on Xbox consoles there is a very real risk for the the game. Hi-Fi Rush was a critical success and won awards, which is likely what will happen for Hellblade 2. But will it sell well? I pray I’m not writing a news story covering Ninja Theory and potentially other studios closing their doors next May.
In a Blink of an Eye – Closing Thoughts
I am coming from all this as someone who purchased their Xbox Series X in the summer of 2021. I fully believed the vision Phil Spencer and Xbox Gaming sold everyone. The pro-consumer approach, a service that let smaller titles flourish with the most eyes on them and a series of first party developers primed to offer experiences not found anywhere else.
But as the years went on, this dream slowly vanished in the blink of an eye. Xbox as a gaming division grew too big and made too many baffling decisions. It resulted in them failing some of their more prominent studios. If they haven’t made the effort to bring games like Sea of Thieves and Grounded to new places, I genuinely wonder if the four studios we lost could’ve been joined by another few.
Hi-Fi Rush, joining the likes of Ori & The Will of the Wisps, Psychonauts 2 and Sunset Overdrive, are all gambles Microsoft have made that by all accounts shouldn’t exist. Experimental games that while they had an audience, were not the sales juggernauts the higher ups wanted. These titles, alongside others, helped make Xbox validate their place in the games industry.
Rewarding creative, beautiful efforts like these with an unjustified death, sends a message. That Microsoft itself doesn’t care about gaming. Xbox may say they care about gaming, and I could genuinely believe Phil and his team care about the studios under Xbox. But actions speak far louder than words.
If more studios get shuttered simply because they believed the promises Xbox leadership made to them? They should reconsider their place in the console market… or maybe they already have?
