Summary
Arkane Austin and Tango Gameworks were reportedly in the process of pitching sequels toDishonoredandHi-Fi Rushbefore 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 Rushdeveloper Tango Gameworks prominently among them.
In a townhall on Wednesday, Xbox executives allegedly discussed the reasoning behind the closures, citing the understaffed and overstretched nature of the development teams under the Bethesda Softworks publishing branch. Matt Booty, Head of Xbox Game Studios, purportedly stressed that the critical and commercial failure of Arkane Austin’sbug-addled FPSRedfalldid not contribute to the closure of the studio. In fact, both teams were continuing to work on their current titles, and even pitch new ones up until the announcement.

According to Bloomberg, following the disappointing response toRedfall, Arkane Austin was “looking return to its roots by pitching a new single-player ‘immersive sim’ game such as a new entry in theDishonoredseries.” Meanwhile, Tango Gameworks “was in the process of pitching a sequel” to acclaimed rhythm-action gameHi-Fi Rush, which garnered plenty of positive critical reception when it first released on Xbox Game Pass back in January 2023.
Since the release ofDishonoredin 2012 – a spiritual successor to games likeThiefandDeus Ex– Arkane has been an industry leader in the immersive sim genre, following it up with the sequelsDishonored 2andDishonored: Death of the Outsider. In 2017, Arkane Austin solo developedPrey, a science-fiction immersive sim thatpays homage toSystem Shockand which has earned a cult classic title among fans of the genre.
The Tokyo-based Tango Gameworks rose to fame after the release of its third-person horror titleThe Evil Withinin 2014, soon followed by the critically lauded sequel three years later. Next, the studio releasedGhostwire: Tokyoheaded byindustry titansShinji Mikamiand Ikumi Nakamura, before it releasedHi-Fi Rushin 2023.
The Studio Closures Came As a Shock
Fans of these games have awaited news of sequels with bated breath, as one particularlydedicatedPreyfandemonstrated.Redfall’s data miners even found evidence that the game was still being worked on mere hours before the studio was shuttered.
With hopes for newRedfallcontent, pitches for new games, and the desire to hire new talent, all signs point towards the closure of these studios being a sudden and unforeseen shock for the team – a fate, sadly, not all that uncommon for video game development studios.