Tango Gameworks pitched a Hi-Fi Rush sequel before shut down, but Xbox felt its studios were 'spread too thin'

Tango Gameworks reportedly pitched a Hi-Fi Rush sequel before its shutdown.

Earlier this week (May 7), it was revealed that Microsoft would be shutting down four Bethesda Softworks studios including Tango Gameworks and Arkane Austin, the team behind Redfall, Dishonored, and Prey.

Xbox Game Studios head Matty Booty reportedly told staff in an email that the decision was "grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds". He added that the move is part of "reprioritization of titles and resources” that will see “a few teams will be realigned to others".

Now in a new report from Bloomberg, sources who didn't wish to be identified said that the Tango Gameworks was in the process of pitching a sequel. However, during a town hall meeting with ZeniMax staff on May 8, it's claimed that Booty felt ...