Summary
Xboxhead Phil Spencer recently spoke up about the wave of studio closures at the company, includingHi-Fi Rushdeveloper Tango Gameworks. Layoffs and studio closures are rampant in the gaming industry, and not evenXbox’s long list of developers have been spared from this ongoing issue. In May, Microsoft announced thatRedfalldeveloper Arkane Austin, mobile studio Alpha Dog Games, Roundhouse Studios, and the aforementioned Tango Gameworks would all be closing their doors. All four of these developers were acquired as part of Microsoft’s buyout of Bethesda in 2021.
The news of these Xbox-owned studios' impending closures was met with mixed reactions from gamers and industry insiders alike. While the less-than-stellar reception ofRedfallcould be seen as an omen of Arkane Austin’s closure, Tango Gameworks was riding a wave ofsuccess from hit titles likeHigh-Fi Rush,The Evil Within 1 and 2, andGhostwire: Tokyowhen the news of its closure came last month. EvenResident Evilcreator and Tango Gameworks founder Shinji Mikami was taken aback by the announcement, and original Xbox co-creator Seamus Blackley expressed disappointment regarding the mass layoffs in the wake of these studio closures.

Shortly after this week’sXbox Games Showcase livestream, Xbox head Phil Spencer was asked about the closed studios (especiallyHi-Fi Rush’s Tango Gameworks) during an on-stage interview with IGN. Spencer responded by noting that he hasn’t commented on the subject much in the past because he has been focused on the staffers being laid off in the wake of the shutdown, saying that he wishes to do right by them through severance payments and other measures.
Phil Spencer Addresses Latest Xbox Developer Shutdowns
Phil Spencer added that the decision toclose a studio like Tango Gameworksisn’t one he takes lightly, but it was ultimately a necessary one to keep Xbox profitable. “I’ve said over and over, I have to run a sustainable business inside the company, and grow,” he stated during the interview. “And that means sometimes I have to make hard decisions that, frankly, are not decisions I love, but decisions that somebody needs to go make.” Spencer went on to say that Xbox will continue to go forward and build the best business that it can.
The closures of studios likeArkane Austin and Tango Gameworkshave generated plenty of controversy forXbox, with the backlash growing after rumors of both studios pitching sequels forDishonoredandHi-Fi Rushbefore they were shut down. Notable gaming figures likeDeathloopdirector Dinga Bakaba have criticized Xbox for these closures and stressed the importance of supporting the talented people working there - especially after they produce a successful game likeHi-Fi Rush.
Xbox Series X
Microsoft’s ninth-generation console, the Xbox Series X is a powerful machine that can support 4K resolution and 60 fps, depending on the game. Released alongside the Xbox Series S, the Series X has a Custom AMD Zen 2 CPU, a Custom RDNA 2 GPU, and 16 GB of RAM.