In a recent town hall organized by Matt Booty, head of Xbox Game Studios, the company’s future goals were unveiled, shedding light on a strategic shift towards developing small, prestigious games. The development comes shortly after Microsoft announced the closure of multiple gaming subsidiaries.
Booty informed employees about the company’s strategic direction, emphasizing the focus on creating small games that enhance Microsoft’s prestige and garner awards. This shift in strategy was revealed through internal remarks shared with The Verge.
Notably, Microsoft recently shuttered Tango Gameworks, a Japanese developer known for its small yet prestigious hit game, Hi-Fi Rush. Despite Hi-Fi Rush’s critical acclaim and success, Microsoft decided to shut down Tango Gameworks along with esteemed studios like Arkane Austin and Alpha Dog.
Hi-Fi Rush, released just four months ago, amassed three million players and earned multiple accolades during the 2023–2024 awards season, including a Game Award, a Game Developers Choice award, and a BAFTA.
Furthermore, Roundhouse Games will be integrated into ZeniMax Online Studios, the creative force behind The Elder Scrolls Online. These strategic decisions reflect Microsoft’s evolving approach to game development and studio consolidation in the ever-changing gaming industry landscape. For more top technology news, subscribe to our tech newsletter Today’s Cache.