Microsoft says it needs games like Hi-Fi Rush the day after its studio was destroyed

Today, one day after Microsoft announced that it would close four of its game studios, Matt Booty, head of Xbox Game Studios, held a town hall to discuss the division's future goals. “We need smaller games that give us prestige and rewards,” Booty told employees, according to internal remarks shared with The edge.

For some listeners on the call, it was a surprising goal: Microsoft had just shut down Japanese developer Tango Gameworks, which had just released the small, high-profile hit title. Rush to Hi-Fi.

Rush to Hi-Fiwho was a surprise release last year, has been praised for its innovation and charm. The rhythm action game featured music from The Black Keys and Nine Inch Nails, with an art style that evoked the hyper-stylized games of the PS2 era. Just four months after its release, Rush to Hi-Fi reached 3 million players. During the 2023-2024 awards season, the game won a Game Award, a Game Developers Choice Award, and a BAFTA.

Although Microsoft did not share sales data, it was apparently happy with the game. When rumors swirled that the game was not doing well commercially, Aaron Greenberg, vice president of Xbox games marketing, wrote on X that Rush to Hi-Fi “It was a resounding success for us and our players in all key metrics and expectations.”

By all accounts, including Microsoft's, Tango Gameworks has made a success and something totally different from anything that has been done before. Before Rush to Hi-FiTango Gameworks was known exclusively for its survival horror games, including The inner evil series and Ghost Thread: Tokyo. In an interview with Pretty funny gamesPhil Spencer, head of Xbox, explained how important it was for Xbox to allow studios to create games outside of their comfort zone.

“I want to give teams the creative platform to push their abilities and aspirations,” Spencer said.

Rush to Hi-Fi also represented Microsoft's commitment to bringing Japanese exclusives to the console. In an interview with To watch the matcha Japanese video game media outlet, praised Spencer Rush to Hi-Fi for its “high quality” and said gamers could “expect” to see more AAA titles from Japan, referring to the days when Lost Odyssey And Blue Dragon were both exclusive to the Xbox 360. “While there are some titles we can't announce yet,” Spencer said in the September 2023 interview, Translated by VGC, “we are currently developing new games in collaboration with Japanese companies.” It's worth wondering if that's still the case now that Tango is closed.

Currently, small single-player games like Rush to Hi-Fi are having a huge time. Balatroa poker roguelike made by a single developer, sold over a million copies in its first month. Lords of the Manoranother solo development project in early access on Steam, has also sold more than a million copies. Hades 2 just released in early access And doubled its predecessor's record player count on Steam in a single day. Even the original Hades climbs the Steam rankings, breaking his all-time player count record today almost four years after its initial release.

Although we don't know exactly what Microsoft's sales goals were Rush to Hi-Fi, there is clearly a clear appetite for this type of game, with Tango Gameworks perfectly positioned to deliver it. In fact, according to a report of BloombergTango Gameworks was in the process of offering a sequel to Rush to Hi-Fi before it is closed.

With Rush to Hi-Fi, Tango Gameworks has given Microsoft exactly what Booty says it wants: a small, creatively unique, highly praised, award-winning little game. Booty's comments, then, suggest that Xbox executives either couldn't recognize what they had on their hands – or simply didn't know how to capitalize on the success they sought.

We have contacted Microsoft for comment.