Hi-Fi Rush Saved!? Tango Gameworks Purchased Just Before Closure

Months after Xbox parent company Microsoft announced Tango Gameworks' shuttering, game publisher Krafton Inc., known for PUBG, TERA, and The Callisto Protocol, has acquired the acclaimed studio and its award-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 popular titles Hi-Fi Rush and The Evil Within series, had been acquired by Krafton Inc., the South Korean publisher known for PUBG, as announced today through a press release. This acquisition comes in the wake of Tango Gameworks' sudden closure by Microsoft earlier this year, a decision that shocked fans and industry insiders alike.

Krafton’s acquisition of Tango Gameworks includes the rights to Hi-Fi Rush, Tango's award-winning rhythm-based action game that has garnered a dedicated following since its launch. Krafton stated that it will work closely with Xbox and ZeniMax to "ensure a smooth transition and maintain continuity at Tango Gameworks," for its team and projects. With Krafton now owning the rights to Hi-Fi Rush, Tango will "continue developing the Hi-Fi Rush IP and explore future projects."

Krafton stated: "KRAFTON, Inc. today welcomed the talented people of Tango Gameworks to their team, marking an exciting moment in the company’s global expansion and its first significant investment in the Japanese video game market. This strategic move will include the rights to Tango Gameworks’ acclaimed IP, Hi-Fi RUSH."

Tango Gameworks, which was announced to be shut down by Microsoft in May, will now resume business under Krafton’s ownership. The studio, founded by Resident Evil creator Shinji Mikami, is also known for developing popular titles such as The Evil Within series and Ghostwire: Tokyo. Despite the studio's success, particularly with the release of Hi-Fi Rush in 2023, Microsoft had decided to axe the studio, along with three others under its umbrella, as part of broader restructuring efforts focusing on Xbox's "high-impact titles."

"KRAFTON intends to support the Tango Gameworks team to continue its commitment 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 said.

It is important to note that other IPs, such as The Evil Within and Ghostwire: Tokyo, will presumably remain under Xbox and Microsoft's control for the time being. Krafton confirmed that their recent acquisition of Tango and Hi-Fi Rush IP will not impact these games, and they will remain available on platforms and storefronts. "KRAFTON intends to support the Tango Gameworks team to continue its commitment 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 spokesperson said, "We’re working with Krafton to enable the team at Tango Gameworks to continue to build games together, and we look forward to playing their next great game."

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

Committed to the critically-acclaimed game, the developers of Hi-Fi Rush took to social media several days after getting laid off by Microsoft, to announce that they were working on a physical edition of the game in collaboration with Limited Run Games. They also pledged a "final patch," which was subsequently released.

Hi-Fi Rush 2 Unconfirmed

Hi-Fi Rush has been Tango Gameworks' standout success, earning several awards, 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 disappointment, both within the industry and among fans.

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

The statement reads: "This integration reinforces KRAFTON’s dedication to expanding its global footprint and enhancing its portfolio with innovative and high-quality content. The addition of Tango Gameworks represents a strategic alignment with KRAFTON’s mission to push the boundaries 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 pitching a Hi-Fi Rush sequel to Xbox. However, Xbox had decided to reject the studio's proposal for a sequel and to expand its team. And while there has been speculation that a sequel to Hi-Fi Rush could emerge from this acquisition, there has yet to be an official announcement on whether Tango's next steps at Krafton leads to a "Hi-Fi Rush 2."