Earlier this year, Tango Gameworks was closed by Microsoft along with a few other studios, which left many gamers disappointed. However, after a few months of its closure, KRAFTON, the company behind the immensely popular battle royale game PUBG, has acquired Tango Gameworks and its Hi-Fi Rush IP.

Tango Gameworks, a Tokyo-based developer founded by the legendary Shinji Mikami, had established itself with a string of successful titles, including The Evil Within series, Ghostwire: Tokyo, and the vibrant and rhythm-based game Hi-Fi Rush.

Despite the critical acclaim that Hi-Fi Rush received, including several prestigious awards, it failed to meet Microsoft’s commercial expectations, even after its launch on the PlayStation 5. As a result, Microsoft made the tough decision to divest from the studio, leading to its closure. This news was a bitter pill to swallow for fans of Tango Gameworks, who feared that the developer’s creative legacy would come to an abrupt end.

According to KRAFTON’s official press release, the existing development team at Tango Gameworks will largely remain intact, with Hi-Fi Rush and The Evil Within 2 Director John Johanas already expressing his excitement on social media.

The company has committed to collaborating closely with Xbox and ZeniMax to ensure a seamless transition and to maintain the continuity of operations at Tango Gameworks. This collaboration aims to support the talented team in continuing their work on the Hi-Fi Rush IP while also exploring new and exciting projects in the future.

While this acquisition secures the future of Tango Gameworks and Hi-Fi Rush, fans of the studio’s horror titles might be left wanting. The rights to The Evil Within and Ghostwire: Tokyo franchises were not included in this deal.

This means that, for now, these beloved IPs remain under Microsoft’s control. However, there is still hope that KRAFTON could negotiate with Microsoft to bring these franchises under its wing in the future, which would prevent them from being shelved indefinitely.

The financial details of the deal have not been disclosed, but the acquisition marks a significant moment for both KRAFTON and Tango Gameworks. For KRAFTON, it is an opportunity to diversify and strengthen its gaming portfolio, while for Tango Gameworks, it represents a new chapter where the studio can continue under new ownership.