Xbox President Sarah Bond Speaks on Recent Studio Closures

President of Xbox Sarah Bond sat down for a 17-minute interview with Bloomberg and spoke about the recent studio closures of Arkane Austin, Alpha Dog Games, and Tango Gameworks.

This week has seen Microsoft’s Xbox gaming division under scrutiny following the sudden decision to shutter three studios and fold Roundhouse Studios into ZeniMax Online Studios. Across the board, the biggest upset was the announcement that Tango Gameworks would be closing following Hi-Fi Rush becoming one of Xbox’s critical darlings. The game won awards, and the goodwill of players, and hit all “key measurements and expectations,” according to Xbox.

Following the tumultuous week, Bond was the focal point of some burning questions from Bloomberg Tech Reporter Dina Bass. When asked about how players should rationalize the recent news and look at Microsoft’s commitment to game development and exclusive games, Bond responded.

“You know, it’s always extraordinarily hard when you have to make decisions like that,” Bond said. “You know, I’ll go back to what I was saying about the industry. And when we looked at those fundamental trends, we feel a deep responsibility to ensure that the games we make, the devices we build, the services that we offer, are there through moments even when the industry isn’t growing, and when you’re through a time of transition. And the news we announced earlier this week is an outcome of that—and our commitment to make sure that the business is healthy for the long term.  But that said, our commitment to having our own studios and working with partners to have games large and small. You know, we’re a platform where you can play GTA, but you can also play Palworld where you can play Call of Duty, and you can also play Pentiment. That that doesn’t change. And frankly, our commitment to Bethesda and the role that it plays is part of Xbox and everything we do.”

Bass continued later in the interview to directly address the shuttering of Tango. Asking Bond, Bass asked, “I think one of the things that was most upsetting both to Xbox gamers and to employees is that, you know, one of the shuttered studios in particular just created a hit game, did really well on Game Pass and in terms of engagement and won a ton of awards. Shouldn’t exceeding that ensure the future of the studio?

Bond is now the first executive from Xbox to be asked in a public forum about the shuttering of Tango Gameworks. In response to Bass, the Xbox president said, “You know, one of the things I really love about the gaming industry is it’s a creative art form, and it means that the situation and what successes for each game in the studio is also really unique. There’s no one-size-fits-all to it for us. And so we look at each studio and each game team, and we look at a whole variety of factors when we’re faced with making decisions and trade tradeoffs like that. But it all comes back to our long-term commitment to the games we create, the devices we build, the services, and ensuring that we’re setting ourselves up to be able to deliver on those promises.”

Unfortunately, Bond didn’t shed any light on why Tango Gameworks was closed. The studio has been responsible for a series of games with fluctuating success. The studio shipped its first game in 2014, survival horror darling The Evil Within. In 2017, the sequel The Evil Within 2 launched. In 2022, Tango Gameworks released Ghostwire: Tokyo to mixed reception. However, last year’s Hi-Fi Rush was undoubtedly a starring game in Xbox’s portfolio, winning ‘Best Audio Design’ at The Game Awards 2023.

Bond isn’t the only Xbox executive who’s been unable to quantify the studio closures. According to WindowsCentral, Matt Booty, head of Xbox Game Studios held a town hall discussing Xbox’s future goals. During which, it’s claimed Booty told employees, “We need smaller games that give us prestige and awards.” This came to many as a surprise given that Hi-Fi Rush appeared to hit those metrics.