Well, I got Hi-fi rush on Steam today, maybe I'll finish again soon.

Xbox Studio Closures: Microsoft Plans More Cost-Cutting Measures After Layoffs - Bloomberg

"Tango was in the process of pitching a Hi-Fi Rush sequel, said the people, who asked not to be identified discussing nonpublic information."

"Matt Booty praised Hi-Fi Rush but did not specify why the company had shut down the development studio behind it"

"Booty added that the shutdown of subsidiary Arkane Austin, the longtime developer of games such as Prey, was not connected to the performance of its new multiplayer game, Redfall"

"Both Tango and Arkane released games last year and were looking to hire additional staff as they pitched new projects, which Booty and Braff suggested was the main factor behind their closures."

With all the information that has came out this has Satya written all over it. I know he's the one that wanted this and probably saw the numbers. Even if those numbers were still in the green (profitable) it wasn't the type of green he wanted. I think Phil and Satya have differing views, but of course Satya gets to decide everything. I know everyone wants to blame Phil and Sarah, but I feel like this was all Satya.

It was. I think it was created just to make a couple contracted games and once they were done the studio closed.

It's quite easy to think at this point of a future where Xbox Game Studios is being only comprised of 4-5 big sure fire AAA franchises while the rest of their IP's lay dormant or are rarely visited due the paradigm shift at Xbox top management.

Certainly not good for the industry at large of course, but the move Microsoft would most likely make at this point.

Also, it does vindicate a lot of the earlier discussions done on the sustainability of Gamepass that were done a lot during the time of ABK acquisitions.
This isn't working as Phil Spencer wanted, or at least fast enough for Microsoft's taste.

Now they've actually got their hands on a bigger fish than their own internal studios themselves arguably, so it goes to say, priorities will most likely shift around again. That recent business update might as well be "updated" again in a few months at this rate

I haven't played it yet, but the plot of Hi-Fi Rush is ironic.

So they wanted to make a bigger and better, Hi-Fi Rush Sequel.... and apparently that was like a "nope!" and a "your all fired" instead.

Jason Schreier clarified that they had decided to close several studios, and they prioritized ones that were currently not working on any new games.

It's been reported that they plan to close down more studios, so the only reason they haven't announced those yet is likely because they are currently working on an unreleased game.
As soon as the games are done, it's adios.

Unless they backtrack on closing more studios in 2024 after all the backlash.

MS is doing MS things, nothing to see here outside of guessing which studios will get axed next.

Not only Bethesda and Bungie have underperformed and released subpar content since they were bought, but they're also working on less games. More mergers please.

Ninja theory must be wondering how they can ever live up to the unrealistic expectations they're faced with now, boost profit margins with a $49 game that was announced 5 years ago by releasing on platforms through which absolutely no one has to buy their game because of Gamepass.... while also boosting Gamepass growth when even a game the size of Diablo 4 couldn't.