The video game industry’s volatility is evident once again with Xbox’s recent studio closures. Four major studios, including Tango Gameworks and Arkane Austin, are disappearing, sparking anger among gamers worldwide. While I can come to terms with Arkane’s closure due to Redfall, Tango Gameworks’ shutdown hits me the hardest. As a studio renowned for delivering top-notch games, what led to this unexpected outcome? Let’s delve into that.
Tango Gameworks: Four Amazing Games in 14 Years
To comprehend the reasons behind Xbox’s decision to shut down Tango Gameworks and three other studios, it’s crucial to understand Tango’s origins. Established in 2010 by Shinji Mikami, the visionary behind the original Resident Evil game, the studio held significant promise.
In line with Mikami’s expertise, the studio delved straight into survival horror. Tango solidified this genre commitment with The Evil Within, a game that garnered critical acclaim and quickly earned respect among gamers worldwide.
The success story continued with an equally impressive sequel, The Evil Within 2. Tango Gameworks then showcased its creative versatility by venturing into new directions. Ghostwire: Tokyo, an action-adventure game, received critical acclaim, demonstrating the studio’s willingness to explore different genres.
However, Tango’s crowning achievement came with Hi-Fi Rush. In a March 2022 interview, Mikami expressed his desire for Tango to expand beyond survival horror. This ambition was evident in Hi-Fi Rush, not only marking a significant departure but also highlighting the studio’s commitment to innovation upon release.
Microsoft’s acquisition of Tango’s parent company, ZeniMax Media, for $7.5 billion in March 2021 marked a significant milestone, positioning the studio as Xbox’s inaugural Japan-based acquisition. The outlook seemed promising, especially with Team Xbox’s visit to the studio during TGS.
Like many fans of Tango’s work, I was taken aback when Xbox announced the company’s departure within six months of their visit to Japan. With Mikami’s departure from the team in February 2023, one can’t help but wonder if this was merely an unexpected turn of events or a deliberate shift in Xbox’s strategy.
Tango Gameworks’ Departure: Strategic Plan or Missteps?
It would be unfair to say that any Tango games were not praiseworthy. Whether it was starting a great series with The Evil Within or creating a standout AA game like Hi-Fi Rush, Tango always ensured fans got something fresh. Hi-Fi Rush even won multiple awards for its music, gameplay, and various other aspects in 2023-24. With everything going well, all I can wonder is why?
Many rumors suggest that Mikami was the heart and soul of Tango, and his departure might have demoralized the team. Furthermore, there are rumors that some Tango Gameworks employees joined Mikami and his new studio, Kamuy Inc.
While these rumors lack concrete evidence, Xbox president Sarah Bond hinted at the reason for Gameworks’ closure in a Bloomberg interview. When asked about the shutdown, Sarah responded:
“We look at each studio, each game team, variety and factors…. but it all comes back to our long-term commitment to games we create, the devices we built, the services..”
This could be influenced by Tango Gameworks’ relatively low output of just four games over the past 14 years. With such a limited portfolio, it may not align well with the strategies of Microsoft Games, especially considering Xbox’s emphasis on promoting Game Pass subscriptions. Given the push for sustainable gaming experiences, it’s challenging for titles with unique creative approaches, like those from Tango, to drive sufficient subscription sales.
Xbox’s forward-thinking approach might prioritize annually refreshed franchises like Call of Duty, which, despite potential repetitiveness, consistently drive sales and subscriptions. As former Microsoft/EA employee Brad Hilderbrand suggested in a LinkedIn post, these titles may better fit Xbox’s long-term goals as long as they maintain strong sales figures.
“..games like Hi-Fi Rush, which is incredible mind you, gets a very small bump in revenue from being the hot Game Pass game for a month, then it falls off a cliff when everyone moves onto the next thing. Poor Redfall had it even worse since it launched so rough, it never had a chance.”
A Prime Example of Letdown
As I near the conclusion and bid farewell to my cherished relationship with Tango Gameworks, one undeniable reality emerges: Tango simply wasn’t the right fit for Xbox.
From a pragmatic business perspective, the decision seems sound. Yet, we can’t help but empathize with Tango Gameworks, knowing the passion they poured into crafting unforgettable gaming experiences. If I were to sum up this sentiment in a single word, it would echo the sentiments expressed by Shinji Mikami himself after the news broke: “Sad.”
Only time will unveil whether Xbox can rebound and achieve its desired objectives. Yet, as both a gamer and a professional within the gaming realm, witnessing the sudden departure of numerous creative talents is undeniably disheartening. What lies ahead for the individuals behind Hi-Fi Rush remains uncertain, awaiting the passage of time to reveal their fate.
Do you believe Xbox’s decision to close Tango Gameworks is justified? Drop your opinions in the comments box underneath.
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