Xbox misses the popularity of Hi-Fi Rush after closing four game studios

Following Microsoft’s announcement that it was closing four of its game studios, Xbox Game Studios chief Matt Booty gave a speech at a town hall meeting outlining the division’s future goals and making an odd assertion.

Booty communicated to colleagues, “We’re aiming for smaller-scale games that bring us acclaim and recognition,” according to Verge-exclusive internal communications.

As the gaming industry experiences a snag, Xbox became the latest publisher to reduce expenses when it shuttered its studios, which included Arkane Austin.

Some players were taken aback by this statement, given that Microsoft recently decided to close Tango Gameworks, a Japanese company best known for the popular game Hi-Fi Rush.

After making an unexpected appearance last year, Hi-Fi Rush became popular due to its unique gameplay and appealing design. Along with music from well-known artists like The Black Keys and Nine Inch Nails, the rhythm-based action game included stylized graphics reminiscent of PS2 games.

Three million people had played Hi-Fi Rush in just four months after its launch. Furthermore, the game won major honors at the 2023–2024 awards season, including a BAFTA, a Game Award, and a Game Developers Choice award.

Although Microsoft has not disclosed precise sales numbers, there are hints that the firm was happy with the game’s performance.

Vice president of Xbox game marketing Aaron Greenberg insisted on X that Hi-Fi Rush “was a break out hit for us and our players in all key measurements and expectations” in response to the rumors suggesting otherwise.