Xbox Axes Beloved Studios: Phil Spencer Reveals Why

Phil Spencer reveals that the closure of Arkane Austin and Tango Gameworks was due to the necessity of maintaining a sustainable business model for Xbox. Both studios, despite their critical acclaim—especially Tango's Hi-Fi Rush—were shut down. This has led to mixed reactions from fans, especially given Arkane Austin's shift to a live-service title with Redfall, a genre they were not traditionally known for. Spencer emphasized that while such decisions are difficult, they are crucial for the growth and sustainability of Xbox's business, ensuring continued investment and development within the platform.

According to Phil Spencer, the decision to close these studios was based on the need to maintain a sustainable business model for Xbox. While these decisions are tough and unpopular, they are sometimes necessary to ensure the overall growth and sustainability of the Xbox brand.

Background information: Arkane Austin is known for creating critically acclaimed single-player games such as the Dishonored series and Prey. However, their recent shift to a live-service model with Redfall, which underperformed, might have contributed to the decision. Tango Gameworks gained significant attention with Hi-Fi Rush, a game praised for its innovative gameplay and rhythm-based mechanics. Their closure was surprising given their recent success and popularity.