Deal keeps Hi-Fi Rush developer Tango Gameworks from being shut down

The video game industry received some fantastic news on Sunday night. Tango Gameworks — developers of games like Hi-Fi Rush, The Evil Within, and Ghostwire: Tokyo — will not be shut down by Microsoft after all.

That’s happening because Microsoft has made the decision to sell Tango Gameworks and the Hi-Fi Rush IP to Krafton, a South Korean video game publisher best known for backing PlayerUnknown’s Battlegrounds. A PR representative for PUBG publisher says that “Krafton plans to transfer approximately 50 development staff from Tango Gameworks to Krafton’s Japan subsidiary.”

Microsoft shocked the entire video game industry when it announced its plans to shutter Tango Gameworks and a few other ZeniMax studios in May. Just a year prior, Tango Gameworks had delivered Hi-Fi Rush, one of the most beloved new Xbox IPs in years. Its closure brought up feelings of helplessness, as it showed that even studios making game-of-the-year-caliber titles could potentially be on the chopping block. Thankfully, Krafton saw the value in Tango Gameworks and Hi-Fi Rush as a potential franchise and decided to acquire both.

“This integration reinforces Krafton’s dedication to expanding its global footprint and enhancing its portfolio with innovative and high-quality content,” Krafton explained in a press release. “The addition of Tango Gameworks represents a strategic alignment with Krafton’s mission to push the boundaries of interactive entertainment.” Krafton also says it will work with Xbox and ZeniMax Media to “ensure a smooth transition and maintain continuity at Tango Gameworks.”

It also teased that Tango Gameworks will continue to work on the Hi-Fi Rush IP and future projects, heavily implying that a sequel is on the way. In response to this news, Tango Gameworks Creative Director John Johanas proclaimed on X (formerly Twitter): “And this is how it continues. We’re back, baby!” A Krafton representative also clarified to Digital Trends that it does not own the rights to The Evil