Tango Gameworks Acquisition Saves Hi-Fi Rush

Months after Xbox parent company Microsoft announced Tango Gameworks' closure, game publisher Krafton Inc., known for PUBG, TERA, and The Callisto Protocol, has acquired the esteemed studio and its prize-winning rhythm action game, Hi-Fi Rush.

PUBG's Krafton Acquires 'Hi-Fi Rush' Studio Tango GameworksTango to 'Continue Developing Hi-Fi Rush IP' and 'Explore Future Projects'

Tango Gameworks, the studio behind acclaimed titles Hi-Fi Rush and The Evil Within series, was acquired by Krafton Inc., the South Korean publisher renowned for PUBG, as announced today via a press release. This acquisition follows Tango Gameworks' abrupt closure by Microsoft earlier this year, a decision that surprised fans and industry experts.

Krafton’s acquisition of Tango Gameworks encompasses the rights to Hi-Fi Rush, Tango's prize-winning rhythm-action game that has cultivated a loyal fanbase since its release. Krafton declared that it will collaborate closely with Xbox and ZeniMax to "ensure a seamless transition and uphold continuity at Tango Gameworks," for its staff and undertakings. With Krafton now possessing the rights to Hi-Fi Rush, Tango will "continue developing the Hi-Fi Rush IP and explore future endeavors."

Krafton stated: "KRAFTON, Inc. today welcomed the gifted individuals of Tango Gameworks to its team, marking a momentous occasion in the company’s global expansion and its initial substantial investment in the Japanese video game market. This strategic acquisition will comprise the rights to Tango Gameworks’ celebrated IP, Hi-Fi RUSH."

Tango Gameworks, which was slated for closure by Microsoft in May, will now operate under Krafton’s ownership. The studio, established by Resident Evil creator Shinji Mikami, is renowned for developing acclaimed titles such as The Evil Within series and Ghostwire: Tokyo. Despite the studio's achievements, especially with the 2023 release of Hi-Fi Rush, Microsoft had opted to discontinue the studio, alongside three others, as part of a restructuring focused on Xbox's "high-impact titles."

"KRAFTON intends to support the Tango Gameworks team to continue its dedication to innovation and delivering fresh and exciting experiences for fans. There will be no impact on the existing game catalog of The Evil Within, The Evil Within 2, Ghostwire: Tokyo, and the original Hi-Fi RUSH game," the publisher stated.

It's noteworthy that other IPs, including The Evil Within and Ghostwire: Tokyo, will likely remain under Xbox and Microsoft's purview for the present. Krafton confirmed that their recent acquisition of Tango and Hi-Fi Rush IP will not affect these games, and they will continue to be accessible on existing platforms and marketplaces. "KRAFTON intends to support the Tango Gameworks team to continue its dedication to innovation and delivering fresh and exciting experiences for fans," they said. "There will be no impact on the existing game catalog of The Evil Within, The Evil Within 2, Ghostwire: Tokyo, and the original Hi-Fi RUSH game."

In a statement to Windows Central, a Microsoft representative said, "We’re collaborating with Krafton to enable the team at Tango Gameworks to continue creating games, and we anticipate playing their next outstanding game."

Tango Gameworks was among several Bethesda studios Microsoft decided to close earlier this year. The studio joined Xbox when ZeniMax was acquired in 2021. Despite the critical acclaim of Hi-Fi Rush, Microsoft’s decision to close the studio was part of a broader strategy also impacting Arkane Austin, Alpha Dog Games, and Roundhouse Studios.

Dedicated to the acclaimed game, the Hi-Fi Rush developers took to social media days after their Microsoft dismissal, announcing they were developing a physical edition in collaboration with Limited Run Games. They also promised a "final patch," which was subsequently released.

Hi-Fi Rush 2 Unconfirmed

Hi-Fi Rush has been Tango Gameworks' exceptional success, earning several accolades, including 'Best Animation' at the BAFTA Games Awards, and 'Best Audio Design' at The Game Awards and Game Developers’ Choice Awards. The closure of Tango Gameworks was met with dismay, both within the industry and among fans.

Developer Takeo Kido took to social media in the wake of the closure, sharing pictures from what he recounted was the studio's final day. Now, Krafton says it will work with Tango Gameworks to further its mission to "push the boundaries of interactive entertainment."

The statement reads: "This integration strengthens KRAFTON’s commitment to expanding its global presence and enriching its portfolio with innovative and high-quality content. The addition of Tango Gameworks reflects a strategic accord with KRAFTON’s mission to advance the frontiers of interactive entertainment."

At the time that the closures of these Bethesda studios were being reported, it emerged that Tango Gameworks was in the process of proposing a Hi-Fi Rush sequel to Xbox. However, Xbox had decided to decline the studio's proposal for a sequel and to augment its team. And while there has been speculation that a sequel to Hi-Fi Rush could result from this acquisition, there has yet to be an official announcement on whether Tango's next steps at Krafton lead to a "Hi-Fi Rush 2."