Matt Booty from Xbox has indicated that a leadership transition contributed to the closure of Tango Gameworks

Xbox's Matt Booty has shed some light on the rationale behind the closure of Tango Gameworks, pointing to recent leadership changes as a significant element.

While featured on Variety's Strictly Business podcast, and mentioned by Eurogamer, the leader of Xbox Game Studios was asked if efforts were made to sell the Japan-based developer prior to its closure.

Booty refrained from divulging the "nitty gritty details" out of respect for those impacted by the shutdown, yet acknowledged the "immense effort" put into developing Hi-Fi Rush, lauding it as a "great game" that "performed well."

"We must remember it's as much about the future as it is about the past... Various factors contribute to a game's success," he mentioned.

"Who is in charge? What kind of creative leadership do you have? Is it the same team that previously achieved success?

"We need to evaluate all these factors and consider if we are set up for future success. Conditions that once led to success may no longer be present when planning ahead."

These remarks appear to reference the leadership shifts at Tango Gameworks in the past year, notably after the exit of founder Shinji Mikami in 2023.

Tango Gameworks was among the four ZeniMax-owned studios Microsoft shuttered in May, including Arkane Austin, developers of Redfall, alongside Alpha Dog Studios, creators of Mighty Doom, and Roundhouse Games.

Phil Spencer, Microsoft's Gaming CEO, also addressed these closings at IGN Live last month, stating that "hard decisions" were essential to "maintain a sustainable business."