Summary
- Phil Spencer is addressing the recent studio closures at Xbox, stating that tough decisions are necessary for company profitability.
- News of the unexpected closure of Hi-Fi Rush developer Tango Gameworks in May was met with particularly fierce backlash from industry figures and gamers alike.
Xbox head Phil Spencer recently spoke up about the wave of studio closures at the company, including Hi-Fi Rush developer Tango Gameworks. Layoffs and studio closures are rampant in the gaming industry, and not even Xbox’s long list of developers have been spared from this ongoing issue. In May, Microsoft announced that Redfall developer 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 of Redfall could be seen as an omen of Arkane Austin's closure, Tango Gameworks was riding a wave of success from hit titles like High-Fi Rush, The Evil Within 1 and 2, and Ghostwire: Tokyo when the news of its closure came last month. Even Resident Evil creator 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.
Phil Spencer Fuels Rumors About an Xbox Handheld Console
With a simple comment, Phil Spencer further fuels speculation that Xbox is planning to announce a handheld console sometime soon.
Shortly after this week’s Xbox Games Showcase livestream, Xbox head Phil Spencer was asked about the closed studios (especially Hi-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 to close a studio like Tango Gameworks isn’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 like Arkane Austin and Tango Gameworks have generated plenty of controversy for Xbox, with the backlash growing after rumors of both studios pitching sequels for Dishonored and Hi-Fi Rush before they were shut down. Notable gaming figures like Deathloop director 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 like Hi-Fi Rush.
- Brand
- Microsoft
- Original Release Date
- November 10, 2020
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.
Checkbox: control the expandable behavior of the extra info- Hardware Versions
- Xbox Series X
- Original MSRP (USD)
- $499
- Weight
- 9.8 LBS