Tango Gameworks taken over and “revived” by PUBG publisher Krafton, with plans to expand Hi-Fi Rush IP 

After abruptly closing its doors in May this year to the shock of fans and fellow developers, Japanese game studio Tango Gameworks is set to resume its activities under Krafton. The South Korean publisher announced on August 12 that it has taken over Tango Gameworks and welcomed its employees with the cooperation of Microsoft and ZeniMax Media. Krafton also has plans for the Hi-Fi Rush IP, which it has acquired the rights to.

Founded by Resident Evil director Shinji Mikami in 2010, Tango Gameworks quickly went on to be acquired by ZeniMax Media, the owner of Bethesda Softworks. From there, the studio developed The Evil Within series, Ghostwire: Tokyo, and the universally acclaimed Hi-Fi Rush. In the meantime, the developer became a part of Microsoft, which acquired ZeniMax Media in 2021.  

Two years later, Shinji Mikami left Tango Gameworks, and in May 2024, it was suddenly announced that Tango Gameworks would be closing. Xbox executive Matt Booty called the closure “a forward-thinking decision” and hinted that it had to do with the studio remaining without a leader. However, fans and developers from around the world were not convinced, criticizing Microsoft harshly for unfairly “killing” a prospective studio.

But now, two months after Tango’s closure, Krafton has stepped in to take over, and it seems Microsoft has cooperated in the integration process and pledged to support the studio’s staff in resuming their work at the new company. Krafton already owns several development studios, including PUBG STUDIOS, Bluehole Studio, Unknown Worlds, and Striking Distance Studios, and has produced titles such as PUBG: Battlegrounds, New State Mobile, TERA, and The Callisto Protocol. 

In the announcement, Krafton emphasizes that this is their first major investment in the Japanese game market and an important part of their global strategy. The decision to bring Tango Gameworks on board was apparently driven by Krafton’s assessment of the studio’s originality and game-making skills. In taking over the business, Krafton also took over the rights to the Hi-Fi Rush IP from Microsoft, which it plans to expand through future projects. 

However, these organizational changes are not expected to bring any changes to the existing Hi-Fi Rush, The Evil Within or Ghostwire: Tokyo, which are a part of Microsoft’s catalogue.