Krafton snaps up Tango Gameworks and Hi-Fi Rush IP, adding 13th game development studio to its portfolio

Tango Gameworks has suddenly revived just months after being shut down by Microsoft. The Japanese studio will now be part of PUBG maker Krafton.

Hi-Fi Rush

What happened?

• Krafton shared the news on its official website, announcing that it has fully acquired Tango Gameworks and the rights to its latest game, Hi-Fi Rush. The deal amount and other financial terms remain undisclosed.
• The acquisition is part of Krafton’s global expansion, marking its first significant investment in the Japanese games market.
• “As part of this strategic agreement, Krafton intends to collaborate with Xbox and ZeniMax to ensure a smooth transition and maintain continuity at Tango Gameworks, allowing the talented team to continue developing the Hi-Fi Rush IP and explore future projects,” Krafton said in a statement.
• It is worth noting that other franchises developed by Tango will remain with Microsoft, as the deal won’t affect games like The Evil Within 1-2 and Ghostwire: Tokyo.
• “We’re working with Krafton to enable the team at Tango Gameworks to continue to build games together and we look forward to playing their next great game,” a Microsoft spokesperson told Windows Central.

Tango Gameworks was founded in 2010 by Resident Evil creator Shinji Mikami. The studio soon faced financial problems and ended up being acquired by Bethesda Softworks through its parent company ZeniMax. As part of The Elder Scrolls maker, Tango has developed The Evil Within series.

In 2021, Microsoft completed its acquisition of ZeniMax Media, making Bethesda its wholly owned subsidiary. Under Xbox’s leadership, Tango Gameworks launched Ghostwire: Tokyo and Hi-Fi Rush. The latter received acclaim from both critics and players, also winning multiple awards for its audio design and animation.

In May 2024, Microsoft closed four of its first-party studios, including Arkane Austin and Tango Gameworks. Commenting on this decision, Phil Spencer noted that “I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make.”

How many game studios does Krafton have?

In 2018, South Korean game developer Bluehole Studio established Krafton as its parent company following the success of PUBG. With the addition of Tango Gameworks, Krafton now has 13 game development studios:

• Bluehole Studio — known for its MMORPG TERA, the studio plans to continue to make games in the genre and is now working on Dark and Darker Mobile (in partnership with Ironmace);
• PUBG Studio — owner of the PUBG IP, responsible for the game’s PC and console versions;
• RisingWings — mobile developer known for games like Golf King, Mini Golf King, and Defense Derby;
• Striking Distance Studios — developer of The Callisto Protocol (it was co-founded in 2019 by Glen Schofield, who left the studio last year);
• Dreamotion — founded in 2016 and acquired by Krafton in 2021, the studio’s portfolio includes mobile games like Road to Valor and Ronin: The Last Samurai;
• Unknown Worlds Entertainment — developer of Subnautica, acquired by Krafton in 2021;
• 5minlab — known for games like Smash Legends and Baam Squad, the South Korean studio was acquired by Krafton in 2022;
• Neon Giant — developer of cyberpunk action game The Ascent, acquired by Krafton in 2022;
• Krafton Montreal — led by former Far Cry game director Patrik Méthé, the team is now working on the game adaption of South Korean novels The Bird That Drinks Tears;
• ReLU Games — established in 2023, the studio focuses on utilizing LLMs and deep learning in game development (see this year’s detective title Uncover the Smoking Gun);
• Flyway Games — established in 2023, the team focuses on small-budget games (earlier this year, it launched co-op bullet heaven / action roguelike Trinity Survivors);
• Vector North — established in 2023, it is a game development studio headquartered in Prague, Czech Republic;
• Tango Gameworks — developer of Hi-Fi Rush, acquired in August 2024.

In 2021, Krafton also acquired Thingsflow, a Korean service company known for its chat platform HelloBot.