Rejoice! Tango Gameworks is NOT Shutting Down!

In a surprising turn of events, the video game industry received some great news on Sunday night: Tango Gameworks, the acclaimed developers behind Hi-Fi Rush, The Evil Within, and Ghostwire: Tokyo, will remain operational despite earlier shutdown threats from Microsoft.

The studio’s survival is thanks to Microsoft’s decision to sell Tango Gameworks, along with the Hi-Fi Rush intellectual property, to Krafton, a prominent South Korean video game publisher best known for supporting PlayerUnknown’s Battlegrounds. According to a PR representative from Krafton, the company plans to integrate approximately 50 developers from Tango Gameworks into its Japan subsidiary.

This news comes as a relief after Microsoft shocked the gaming community in May by announcing plans to close Tango Gameworks and several other ZeniMax studios. The potential closure was particularly surprising given that just a year earlier, Tango Gameworks had released Hi-Fi Rush, one of the most celebrated new Xbox IPs in recent years. The prospect of shutting down a studio responsible for such a critically acclaimed title left many feeling disheartened, as it highlighted the vulnerability of even the most successful game developers. Fortunately, Krafton recognized the potential in Tango Gameworks and the Hi-Fi Rush franchise, stepping in to acquire both.

Krafton stated in a press release, “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.” The company also confirmed that it would collaborate with Xbox and ZeniMax Media to ensure a smooth transition and maintain continuity at Tango Gameworks.

Krafton hinted that Tango Gameworks would continue to develop the Hi-Fi Rush IP and work on future projects, suggesting that a sequel may be in the works. In response to the acquisition, Tango Gameworks Creative Director John Johanas enthusiastically shared on X (formerly Twitter), “And this is how it continues. We’re back, baby!” However, a Krafton representative clarified to Digital Trends that the company does not own the rights to The Evil Within or Ghostwire: Tokyo.

For those interested in experiencing Hi-Fi Rush, the game is available on PC, Xbox Series X/S, and PlayStation 5. Krafton also assured that the acquisition would not affect the availability of Tango Gameworks’ existing titles.