Report - ZeniMax on studio closures: "I think we were about to topple over"

This week, Microsoft and Bethesda announced that they would be closing down multiple game development studios under their umbrella. These include Alpha Dog Games, maker of Mighty Doom, and Arkane Austin, developer of the disastrous Redfall among others. In the gaming industry, the conventional wisdom has long been held that bad games sink you and great games save you, which would lead many to drawing an unfortunate line between Redfall’s reception and Arkane Austin’s closure — but immediately stops supporting that conclusion when you get to Tango Gameworks.

It's been a rough week for Xbox following multiple studio closures decided by Microsoft and the severe blowback from fans and fellow developers alike, not to mention reports of Perfect Dark having a rough time, but a new rumor suggests State of Decay 3, at least, might be coming along well.

Xbox Game Studios head Matt Booty has reportedly said Microsoft needs smaller games that will earn it «prestige and awards» a day after shutting down Tango Gameworks.

A new report suggests that Arkane Austin wanted to make a new single-player game, such as a Dishonored sequel, before the studio was closed.

Microsoft shut down the widely admired studios behind Hi-Fi Rush and Prey earlier this week, but when asked about the closures, Xbox president Sarah Bond gave a nondescript response that success for each game "is really unique."

Xbox president Sarah Bond has responded to questions about Microsoft’s decision to shut a number of much-loved studios this week, insisting it was about ensuring the Xbox business remains healthy for the long-term during what she called “this moment of transition.”

Ah, it feels like only yesterday that Microsoft shut down Tango Gameworks, creators of Hi-Fi Rush, and now here's Matt Booty, head of Xbox Game Studios, telling Microsoft staff at an internal townhall meeting that "we need smaller games that give us prestige and awards" - a sentence we might plausibly lengthen to "...like Hi-Fi Rush".

Arkane Austin and Tango Gameworks were reportedly in the process of pitching sequels to Dishonored and Hi-Fi Rush before Xbox’s sudden closure of their studios on Tuesday. This news comes after learning more details surrounding the shutdown of three ZeniMax Media subsidiary studios, Hi-Fi Rush developer Tango Gameworks prominently among them.

In one of the most double-think statements ever made outside of George Orwell’s 1984, Xbox Game Studios head Matt Booty has told employees that “We need smaller games that give us prestige and awards,” just one day after closing down the game studio that was responsible for the prestigious award-winning game, Hi-Fi Rush.

The sudden closure of several video-game studios at Microsoft's Xbox division was the result of a widespread cost-cutting initiative that still isn't finished.

Like us, you’re probably still reeling from Tuesday’s news that Hi-Fi Rush studio Tango and Prey’s Arkane Austin are getting shuttered by Microsoft. According to Bloomberg, these closures were just a part of a “widespread cost-cutting initiative” that’s still underway. All signs point towards more cuts to come, basically. ZeniMax studios seem to be the main target.

One day after closing Hi-Fi Rush developer Tango Gameworks, Xbox studios boss Matt Booty reportedly told staff the company needs “smaller games that give us prestige and awards”.