I don't understand it either. Maybe there's more going on behind the scenes that we don't know about, but on the face of it seems like a really poor decision.
Large publishers keep reiterating the importance of successful IPs these days, and Hi-Fi Rush was like lightning in a bottle. Here Microsoft had a new IP with critical acclaim, suitable for a large audience, and ripe for a sequel. You'd think they would cling to it for dear life, especially given how their other IPs are doing (Halo, Redfall, Starfield...)
Closing the studio doesn't necessarily mean they're ditching the IP, but it doesn't bode well.
Large publishers keep reiterating the importance of successful IPs these days, and Hi-Fi Rush was like lightning in a bottle. Here Microsoft had a new IP with critical acclaim, suitable for a large audience, and ripe for a sequel. You'd think they would cling to it for dear life, especially given how their other IPs are doing (Halo, Redfall, Starfield...)
Closing the studio doesn't necessarily mean they're ditching the IP, but it doesn't bode well.