Matt Booty, president of game content and studios at Microsoft Gaming, has stated the need to create smaller games that will bring prestige and rewards. He said this during a meeting with employees, The Verge reports.

And that would be fine, if Microsoft hadn’t recently announced the closure of four internal Bethesda studios, including Tango Gameworks, which had just recently developed a small game that had garnered prestige and awards.

Hi-Fi Rush was released last year without much publicity, yet it was highly praised for its innovation and charm. In just four months after its release, the game gathered 3 million players. In the 2023-2024 award season, it won the Game Award, Game Developers Choice, and BAFTA awards.

Although Microsoft did not share sales data, it was obviously pleased with the game. When rumors surfaced that its commercial success wasn’t very high, Aaron Greenberg, vice president of marketing for Xbox games, wrote on X that Hi-Fi Rush “was a true hit for us and our players across all key metrics and expectations.”

According to estimates, Tango Gameworks has created a hit and it’s completely unlike anything it’s done before. Prior to Hi-Fi Rush, the company was known for its survival horror games, including The Evil Within and Ghostwire series: Tokyo.

In an interview with Kinda Funny Games, Microsoft Gaming CEO Phil Spencer talked about the importance of allowing studios to create games outside their comfort zone.

“I want to give the teams a creative platform so they can develop their abilities and realize their aspirations,” Spencer said.

Hi-Fi by Rush Tango Gameworks gave Microsoft exactly what Matt Booty expected: a small, creatively unique, highly acclaimed, award-winning game. Thus, Booty’s comments suggest that management did not understand what they had in their hands – or simply did not know how to capitalize on the success they were seeking.