Despite Xbox closing Tango, the studio behind Hi-Fi RUSH will live on thanks to Microsoft's sale of it to the company behind PUBG.

The Japanese studio will change hands and continue producing video games.

Despite Xbox closing Tango, the studio behind Hi-Fi RUSH will live on thanks to Microsoft's sale of it to the company behind PUBG.

The Japanese studio will change hands and continue producing video games.

Tango Gameworks, the studio responsible for The Evil Within and Hi-Fi RUSH, will survive against all odds. Months after announcing its closure, Microsoft confirmed that it reached an agreement with Krafton Inc for the acclaimed studio founded by Shinji Mikami to continue operating as a development team under the company responsible for PUBG and The Callisto Protocol.

Through a statement, Krafton Inc announced that today they welcome Tango Gameworks to their team. With this, the South Korean company makes its first investment in the Japanese video game market and acquires the rights to Hi-Fi RUSH, a critically acclaimed game that was nominated in several categories at The Game Awards in 2023.

“Today Krafton welcomes 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 Hi-Fi RUSH,” the company mentioned in its statement.

Meanwhile, a Microsoft spokesperson told Windows Central: “We are working with Krafton to enable the Tango Gameworks team to continue building games together, and we are excited to play their next big game. There will be no impact on Tango’s existing catalog.”

It is important to note that the rights to franchises like The Evil Within and Ghostwire Tokyo will remain with Microsoft as part of Bethesda Softworks. We reiterate that Hi-Fi RUSH will indeed pass into Krafton’s hands, suggesting that the studio and the publisher are interested in developing a sequel.

Why did Microsoft get rid of Tango Gameworks?

Tango Gameworks was founded in 2010 by Shinji Mikami, a creative best known for being one of the minds behind Resident Evil. The studio began operations in March 2010 with only 13 employees, and its first few months were enough for ZeniMax Media to purchase it in October of the same year. The studio came under Microsoft’s control in September 2020 when they reached an agreement to acquire ZeniMax Media and all the studios that are part of Bethesda Softworks’ operations.

At the beginning of 2024, in an attempt to cut costs, Microsoft decided to close Tango Gameworks, a move that disappointed its community, especially the fans who were charmed by Hi-Fi RUSH. But why did they decide to close a studio with such a celebrated title?

According to Matt Booty, head of Xbox Game Studios, the sudden closure of Tango Gameworks was due to simply not seeing a future for it as a business: "These decisions are never taken lightly, never taken quickly, and there are a lot of people, processes, and oversight to ensure that we are making a good decision."

Hi-Fi Rush has a future thanks to Krafton
Hi-Fi Rush has a future thanks to Krafton

What is Krafton?

In case you don’t remember, Krafton is a South Korean video game company that was previously known as Bluehole. This company emerged after the overwhelming success of PUBG led Tencent to invest in Bluehole. Since then, the company has been managing various development studios responsible for AAA games, games as a service, and video games for iPhone and Android.

Since its foundation, Krafton has released video games such as The Callisto Protocol, Subnautica: Below Zero, NEW STATE MOBILE, and Smash Legends.

And you, what do you think of this change? Do you think Tango Gameworks will be able to do great things together? Tell us in the comments.

Follow this link to see more news related to Tango Gameworks. On the other hand, here you’ll find all our coverage on Xbox-related topics.

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