Tango Gameworks Proposes Sequel to Hi-Fi Rush Prior to Unexpected Closure

A recent Bloomberg report reveals that Tango Gameworks had been actively pursuing the development of a sequel to Hi-Fi Rush and was seeking to expand its team before facing an unexpected shutdown.

The report also delves into the circumstances surrounding the closures of Tango Gameworks and Arkane Austin, the studio behind Redfall. According to sources, Xbox leadership expressed concerns over the studios being overstretched, likening the situation to spreading peanut butter thinly on bread. IGN initially reported on these closures, highlighting Arkane Austin’s work on Redfall DLC prior to the studio’s closure.

Details about the proposed sequel remained scant, but Tango Gameworks was actively seeking to expand its team despite the departure of founder Shinji Mikami in 2023. Xbox had previously hailed Hi-Fi Rush as a “breakout hit” in terms of player engagement and satisfaction.

Meanwhile, Arkane Austin was contemplating a return to its signature style with a new single-player immersive sim, as per the report. The studio, known for its work on Prey, aimed to revisit its roots following the game’s post-launch acclaim despite initial challenges in 2017.

However, both projects were still in the early pitching stages, indicating they were years away from fruition. Ultimately, Tango Gameworks, Arkane Austin, and Alpha Dog Games, developer of Mighty Doom, faced closures, while Roundhouse Studios was integrated into ZeniMax Online Studios. Xbox’s cost-cutting measures continued, with reports suggesting ongoing severance offers to ZeniMax employees opting for voluntary buyouts.

Jill Braff, head of ZeniMax studios, along with Matt Booty, cited a need to streamline operations and concentrate on fewer projects as reasons for the closures.

During a town hall meeting, Braff expressed the challenges of managing nine global studios with a small central team and an ever-expanding workload, stating, “It’s hard to support nine studios all across the world with a lean central team with an ever-growing plate of things to do. I think we were about to topple over.”

Xbox has undertaken significant studio reductions throughout the year, notably with substantial cutbacks to Activision Blizzard in January. These actions have triggered surprise and discontent within the gaming industry, already reeling from layoffs in 2023 and 2024. Dinga Bakaba, head of Arkane Lyon, criticized Xbox for Tuesday’s closures, urging executives to reconsider their approach and not to risk the livelihoods of artists and entertainers in their pursuit of profit.

As per a report from The Verge, there’s uncertainty surrounding Xbox’s future amid a slowdown in Game Pass subscriptions and declining Xbox sales. Despite its impending release on May 21, Senua’s Saga: Hellblade II has seen minimal marketing activity beyond a brief promotion in a Wednesday tweet. Additionally, Xbox is contemplating another price hike for Xbox Game Pass Ultimate and deliberating over including Call of Duty in the service.

Meanwhile, developers are grappling with the aftermath, with former Arkane Austin developer Harvey Smith expressing solidarity with his former colleagues. In a tribute, he remarked, “I just want to say that I love all the people at Arkane Austin so much. Great times, hard times, we went through so much, together. Of course, today’s news is terrible, for all of us. Your talent will lift you up, and I will do anything I can to help.”