Krafton acquires Tango Gameworks and Hi-Fi Rush franchise from Microsoft

PUBG maker Krafton has acquired Hi-Fi Rush developer Tango Gameworks from Microsoft.

The move has pulled the Japanese studio back from the brink, with Microsoft having recently announced plans to shutter the Ghostwire: Tokyo and The Evil Within developer.

Krafton said the deal marks its first significant investment into the Japanese video game market and includes the rights to the Hi-Fi Rush franchise.

“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,” reads a press release.

“Krafton intends to support the Tango Gameworks team to continue its commitment to innovation and delivering fresh and exciting experiences for fans. There will be no impact on the existing game catalog of The Evil Within, The Evil Within 2, Ghostwire: Tokyo, and the original Hi-Fi Rush game.”

Krafton is attempting to expand its global footprint and bolster its portfolio with “innovative and high-quality content.”

The purchase of Tango, which was acquired by Microsoft as part of its ZeniMax acquisition in 2021, fits the bill in that regard. Hi-Fi Rush quickly became one of the stand out titles in Xbox Game Studios’ first-party roster when it shadow-dropped in January 2023. The project was met with critical acclaim and seemingly delivered the goods for Microsoft, with Xbox bosses stating it “did well” for the company.

Despite that apparent success, Microsoft chose to torch the studio alongside other ZeniMax subsidiaries including Arkane Austin and Alpha Dog Games. That announcement came months after the company laid off 1,900 workers across its video game division.

Tango and its employees have now found salvation in Krafton, which just reported record sales of £788.9 million ($1 billion) and operating profit of £369.2 million ($471.1 million) during the first half of the current fiscal year.