After Xbox’s unceremonious closure of Tango Gameworks three months ago, PUBG-owner Krafton has forged a deal with Microsoft to bring the studio back to life, as well as transfer ownership of the Hi-Fi Rush property. It’s an unprecedented deal that stands in stark contrast to the tens of thousands of layoffs that have gutted the industry over the last two years. And for one of the most talented studios out there, it’s a huge win.
As announced in a press release, Krafton states, "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."
To be clear, it seems like this deal revolves around ownership of the studio and Hi-Fi Rush specifically, and won’t include Tango’s other properties like The Evil Within and Ghostwire Tokyo.
An important piece of the deal is that the entire staff of Tango will be rehired into their roles, including Hi-Fi Rush director John Johanas. There is one small caveat here, as a Krafton PR representative told Digital Trends, “Krafton plans to transfer approximately 50 development staff from Tango Gameworks to Krafton’s Japan subsidiary.”
In May 2024, Microsoft announced it was closing a handful of studios, including Tango Gameworks, Arkane Austin, and Alpha Dog Studios. There was instant outcry across social media, particularly for the closure of Tango. Hi-Fi Rush had won multiple awards in 2023, including Best Audio Design at The Game Awards. On top of that, Microsoft executive Aaron Greenberg had said on X (formerly Twitter) that Hi-Fi Rush was a “breakout hit for [Xbox] and [its] players in all key measurements and expectations.”
Seeing a beloved developer shut down that’d just released one of the most critically acclaimed games of the year seemed not only heartless but mindless. It drove home a dismal feeling that’s permeated the industry — Tango Gameworks quite literally did everything right and it didn’t seem to matter. As small as this reversal is, it does restore at least a little confidence.
This whole event stands as a singular bright spot in a year that’s been pretty dismal for video games as a whole. Just last week Bungie laid off over 200 employees, and The Order 1886 developer Ready at Dawn was completely shut down. Seeing a beloved developer like Tango Gameworks get a second chance at life is a shot in the arm, and this pretty much guarantees a Hi-Fi Rush 2, and perhaps even more. But it’s also important to remember this is a single instance, even in Microsoft’s layoffs.
All the talented developers at Arkane Austin and Alpha Dog aren’t getting a second chance, and those studios join dozens of others that have fallen by the wayside. There’s still a lot of work and change, that needs to happen to stabilize the video game industry. But at least for today, we can celebrate a small victory.
