Tango Gameworks reportedly pitched a Hi-Fi Rush sequel before its shutdown.
Earlier this week (May 7), it was revealed that Microsoft would be shutting down four Bethesda Softworks studios including Tango Gameworks and Arkane Austin, the team behind Redfall, Dishonored, and Prey.
Xbox Game Studios head Matty Booty reportedly told staff in an email that the decision was "grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds". He added that the move is part of "reprioritization of titles and resources” that will see “a few teams will be realigned to others".
Now in a new report from Bloomberg, sources who didn't wish to be identified said that the Tango Gameworks was in the process of pitching a sequel. However, during a town hall meeting with ZeniMax staff on May 8, it's claimed that Booty felt the Microsoft's studio system was "spread too thin" and likened it to "peanut butter on bread".
With leaders across the division feeling understaffed, Booty said they decided to close Tango and Arkane Austin's to "free up resources elsewhere".
Booty later added that Arkane Austin's closure was not connected to the performance of its latest multiplayer game, Redfall, which underperformed following it's launch last year. It's also claimed that the studio's shut down comes just before the expected release date of a new major update for the game.
Tango Gameworks wasn't alone in wanting to make a new game. Arkane Austin reportedly wanted to return to its roots with a new single-player "immersive sim", such as a new entry in the Dishonored series. Both projects were reportedly still in the pitching phase and were years away before the studio closures occurred.
Following the news of the studios' closure, a new report from The Verge found that Microsoft has been thinking about increasing the price of Xbox Game Pass again, specifically it's Ultimate tier. The same report also suggested an internal debate has been ongoing within the company about whether new Call of Duty games should come to Xbox Game Pass.
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