Hi-Fi Rush Studio Saved from Microsoft Shutdown as Krafton Acquires Tango Gameworks

In a surprising turn of events, the beloved developer of Hi-Fi Rush, Tango Gameworks, has been rescued from imminent closure. Just three months after Microsoft announced plans to shut down the studio, Krafton, the South Korean publisher known for PUBG: Battlegrounds and The Callisto Protocol, has stepped in to acquire both the Hi-Fi Rush IP and the Japanese studio itself.

Krafton revealed on Monday that the acquisition was aimed at ensuring a "smooth transition" that would allow the Tango Gameworks team to continue developing the Hi-Fi Rush franchise and explore future projects. This move follows Microsoft's controversial announcement in May, where it declared its intention to close Tango Gameworks along with other studios like Arkane Austin, the developer of Redfall, and Alpha Dog Studios, known for Mighty Doom. These closures were part of a larger downsizing initiative that came after Microsoft's acquisition of ZeniMax in 2021.

The gaming community widely criticized the decision to shut down Tango Gameworks, especially given the studio's recent success. Hi-Fi Rush had garnered multiple awards during the 2023-2024 awards season, making the closure announcement even more shocking.

However, Tango Gameworks isn't the only studio to escape Microsoft's wave of layoffs. Earlier this year, Skylanders developer Toys For Bob also left Microsoft/Activision to become an independent studio, demonstrating a growing trend of studios finding new life outside of Microsoft's corporate structure.

While the financial terms of the deal have not been disclosed, Krafton has confirmed that the acquisition will not affect the availability of Tango Gameworks' existing game catalog. Interestingly, Hi-Fi Rush was the only IP mentioned in Krafton's announcement, leaving questions about the future of other Tango Gameworks franchises, such as The Evil Within and Ghostwire: Tokyo.

Krafton has expressed its commitment to supporting the Tango Gameworks team in delivering "fresh and exciting experiences for fans." This statement has fueled speculation about potential new projects, including the long-rumored Nintendo Switch port of Hi-Fi Rush or even sequels to the acclaimed game.

Tango Gameworks' acquisition by Krafton marks a significant shift in the gaming landscape, offering hope to fans of the studio and its unique IPs. With Krafton's backing, the future looks bright for Hi-Fi Rush and whatever innovative projects Tango Gameworks decides to pursue next.