this post was submitted on 12 Aug 2024
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I read that by the time MS acquired Tango and Hi-Fi Rush was released, most of the developers and management had already quit, so MS basically only owned the IP anyway. Tango allegedly had nothing in the pipeline, and the few people who were left were working on nothing, and there were no leads to start the process of developing a new game.
Not sure how true it is, but in that case it would make some sense to just shut down the studio, because the alternative would be essentially starting a studio from scratch.
Of course, this begs the question of why all these developers left. I can speak from experience a bit here. When it was announced that a small company I worked for was acquired by a mega corporation, everyone quit because the company we were being acquired by had a reputation of being a horrible, toxic workplace. This is obviously just speculation, but I could see something similar happening here.