Xbox head implies Tango Gameworks closure may have been due to a change of leadership

The head of Xbox Game Studios has implied that Tango Gameworks was closed down due to a change in creative leadership at the studio.

In an interview on Variety’s Strictly Business podcast, Matt Booty was asked specifically about the closure of Tango and why it took place.

Although he didn’t name anyone specifically, Booty implied that a change of leadership and staff at Tango may have been one of the reasons for the closure, suggesting that while Hi-Fi Rush was a success there was no guarantee the remaining set-up would have delivered similar success in the future.

“I won’t get into the real nitty-gritty details on what went into the decision, mostly out of respect for the people there”, Booty said, “just because there was a lot of work that went into delivering Hi-Fi Rush, which was a great game and did well for us.

“I think the thing to be considered is that for us it’s as much a forward-looking situation as much as it is looking back at one certain game.

“There are a lot of things that go into success for a game – what leadership do you have, what creative leadership do you have, is the team the same team that shipped something successful previously?

“We have to look at all of those things together and ask ourselves, are we set up for success going forward? And while there may have been factors or situations that previously led to success, they may not all still be in place as you look at what you’re doing going forward.”

Although he didn’t specifically state it, Booty’s answer appears to at least partially be referring to the departure of Tango founder Shinji Mikami, who left the studio in 2023 to form a new company.

Mikami, who directed The Evil Within and oversaw Tango’s other games in an executive producer role, is best known for his time at Capcom, where he directed the first Resident Evil, its 2002 GameCube remake and Resident Evil 4, among other titles.

His decision to leave Tango may have had an impact on the studio’s value to Microsoft, something Booty appears to imply in his latest explanation.

Booty also suggested that closing Tango Gameworks entirely was not the only option considered, giving examples of previous Xbox-owned studios that went independent instead.

“With many of our studios, we try to look at options,” he explained. “For example, we recently had Toys For Bob, a studio that was previously working on Call of Duty titles, go back out and become a new independent studio, and we’ve announced that we’ve got a publishing deal with them and we’ll share more about that when it’s important.

“I think back to a studio called Twisted Pixel in Texas, that we acquired, then for a change in goals – it wasn’t a perfect match anymore – that studio today is still thriving, we wanted to set them up for success.

“So we absolutely look at what the possible business options are to keep a studio open or perhaps have it change hands, and it’s just one of the things that we look at across the board. Sometimes these things come together, sometimes they don’t.”