Tango Gameworks Acquired, Hi-Fi Rush Rescued Before Shutdown

Several months after Xbox owner Microsoft announced the closure of Tango Gameworks, the studio and its acclaimed rhythm action game, Hi-Fi Rush, have been acquired by Krafton Inc., the publisher behind popular titles like PUBG, TERA, and The Callisto Protocol.

Krafton, Creator of PUBG, Purchases 'Hi-Fi Rush' Developer Tango Gameworks

Tango to 'Continue Hi-Fi Rush Development' and 'Explore New Future Projects'

Krafton Inc., the South Korean company known for PUBG, has announced the acquisition of Tango Gameworks, developer of the beloved Hi-Fi Rush and The Evil Within series. This takeover follows Tango Gameworks' unexpected closure earlier this year by Microsoft—a move that surprised both fans and industry insiders.

As part of the acquisition, Krafton gains the rights to Hi-Fi Rush, Tango's award-winning, rhythm-driven action game that has built a loyal fanbase since its initial release. Krafton stated it intends to collaborate closely with Xbox and ZeniMax to "ensure a smooth transition and maintain continuity for the Tango Gameworks team and their ongoing projects." With Krafton now in control of Hi-Fi Rush, Tango can "continue to advance the Hi-Fi Rush franchise and explore new prospective projects."

In a recent announcement, Krafton confirmed: "KRAFTON, Inc. is excited to welcome the talented team at Tango Gameworks, marking a significant step in its global expansion and representing the company’s first major investment in the Japanese video game market. This strategic acquisition includes the rights to Hi-Fi RUSH, one of Tango Gameworks' celebrated intellectual properties."

After Microsoft’s decision to shut down Tango Gameworks in May, the studio will now resume operations under Krafton’s ownership. Founded by Shinji Mikami, the creator of Resident Evil, Tango Gameworks is also recognized for developing major titles such as The Evil Within series and Ghostwire: Tokyo. Despite the studio's critical and commercial success, especially following the launch of Hi-Fi Rush in 2023, Microsoft opted to close the studio—along with three other in-house teams—as part of a broader company restructuring focusing on Xbox's "high-impact titles."

Krafton confirmed, "KRAFTON plans to support Tango Gameworks in continuing its dedication to innovation and delivering fresh, compelling experiences for its player community. This acquisition will not affect the existing game catalog—The Evil Within, The Evil Within 2, Ghostwire: Tokyo, or the original Hi-Fi RUSH game."

It's worth noting that other intellectual properties such as The Evil Within and Ghostwire: Tokyo are expected to remain under the control of Xbox and Microsoft for the foreseeable future. Krafton confirmed that purchasing Tango and the Hi-Fi Rush IP will not impact these existing games, and they will continue to be accessible across all platforms and storefronts. Reiterating their commitment, Krafton added, "KRAFTON aims to empower the Tango Gameworks team to maintain its innovative spirit and provide new, exciting experiences for players. The existing catalog—including The Evil Within, The Evil Within 2, Ghostwire: Tokyo, and the original Hi-Fi RUSH game—will be unaffected."

A Microsoft spokesperson told Windows Central, "We are working alongside Krafton to enable the Tango Gameworks team to continue creating games together, and we look forward to experiencing their next great release."

Tango Gameworks was one of several Bethesda studios that Microsoft decided to close earlier this year. The studio became part of Xbox when Microsoft acquired ZeniMax in 2021. Even though Hi-Fi Rush received widespread critical acclaim, Microsoft's choice to terminate the studio was part of a larger strategic shift that also impacted Arkane Austin, Alpha Dog Games, and Roundhouse Studios.

Following their layoffs by Microsoft, developers from Hi-Fi Rush took to social media a few days later to announce they were working with Limited Run Games on a physical edition of the game. They also confirmed the release of a "final patch," which has since been distributed.

No Official Confirmation for Hi-Fi Rush 2

Hi-Fi Rush has been Tango Gameworks' major standout hit, earning multiple awards such as 'Best Animation' at the BAFTA Games Awards, as well as 'Best Audio Design' at both The Game Awards and the Game Developers' Choice Awards. News of Tango Gameworks' closure was met with widespread disappointment across the gaming community and industry.

Following the shutdown, developer Takeo Kido shared emotional images from what he recalled as the studio's final day. Now, Krafton says it will partner with Tango Gameworks to further its ambition to "push the boundaries of interactive entertainment."

The official Krafton statement reads: "This integration reinforces KRAFTON’s commitment to global expansion and enhancing its portfolio with innovative, high-quality content. Bringing Tango Gameworks into the fold aligns strategically with KRAFTON's mission to continually push the boundaries of interactive entertainment."

At the time of the Bethesda studio closures, reports indicated Tango Gameworks was actively pitching a sequel to Hi-Fi Rush to Xbox leadership. However, Xbox ultimately declined the studio's proposal for a sequel and team expansion. While there is speculation that Krafton's acquisition could lead to a "Hi-Fi Rush 2," there has been no formal announcement regarding whether Tango's future projects will include a sequel.