Hi-Fi Rush 2, a potential new Dishonored game has been teased by the now-closed Xbox Studios

Arkane Austin and Tango Gameworks were reportedly in the process of rolling out sequels to the two beloved games – namely Hi-Fi Rush 2 and a potential new Dishonored game – when Microsoft made the shock decision to shutter the studios, and more Xbox cuts are said to be on the way.

this According to Jason Schreier of Bloomberg Which, citing sources familiar with the matter, says Arkane was looking to return to his roots after releasing the critically panned multiplayer shooter Redfall last year, and has showcased a new single-player “immersive sim” — “like a new entry in the series.” “Dishonored” – for Xbox executives.

Meanwhile, Tango Gameworks has also been in the promotion phase, hoping to make a sequel to last year’s critically acclaimed rhythm game Hi-FI Rush – a game Microsoft has previously described as “one of the most successful launches for Bethesda and Xbox in recent years.” “.

Inevitably, following Microsoft’s decision to shut down both studios – a move that also saw the closure of Mighty Doom developer Alpha Dog Games and the merger of Roundhouse Studios with ZeniMax Online – neither offering will continue. The company’s justification for the closures remains ambiguous.

According to Schreier, Xbox head Matt Botti and ZeniMax Studios head Gil Braff addressed ZeniMax employees regarding the closures this week in a town hall meeting earlier today. Booty reportedly praised Hi-Fi Rush during the rally, but did not specify why Microsoft chose to shut down Tango Gameworks, insisting that Arkane Austin’s closure had nothing to do with Redfall’s poor critical and commercial performance.

Instead, Botti reportedly said that ZeniMax studios were spread too thin like “peanut butter on bread,” and that leadership made the decision to close some of them to free up resources elsewhere. Braff also suggested that Arkane and Tango Gameworks’ requests for additional staff when they begin rolling out new projects was the “major factor” behind their closure, and expressed hope that ZeniMax’s reorganization would result in a greater focus on fewer projects.

“It’s difficult to support nine studios around the world with a weak central team that has an ever-growing palette of things to do,” she added. “I think we were about to be toppled.”

The sudden closures of Arkane Austin, Tango Gameworks, Alpha Dog, and Roundhouse form part of a broader cost-cutting initiative at Xbox that has yet to pan out, Bloomberg reported. According to people familiar with Microsoft’s plans, the company has begun offering voluntary severance agreements to producers, QA testers, and other ZeniMax employees, while “others across the Xbox organization have been told that more cuts are on the way.”

The closure of ZeniMax Studio this week comes on the heels of Microsoft’s decision to lay off 1,900 Xbox employees earlier this year. While the condemnation was widespread — Arkane Lyon boss Dinja Bakaba publicly described this week’s move as a “stab in the fucking gut” — former Blizzard president Mike Ybarra spoke out in support of Xbox chief Phil Spencer, saying: “I know this hurts him because like any… another person.”