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Tango was one of the studios being hit by Microsoft’s cost-cutting measures, but Krafton has acquired the studio as part of its expansion plans.
Tango Gameworks, a studio formerly with Microsoft’s Xbox division, has been acquired by publisher Krafton, saving the studio from closure.
Tango was established in 2010 and has created multiple popular game franchises such as The Evil Within and Hi-Fi Rush. The studio has changed hands multiple times over the years and came into Microsoft’s possession when it acquired ZeniMax Media, the parent company of game publisher Bethesda Softworks, for $7.5bn in 2021.
The future of the studio was put into disarray earlier this year, when it was revealed that Microsoft was shutting down multiple studios within Xbox as part of cost-cutting measures. This followed reports that Microsoft cut roughly 1,900 jobs at Activision Blizzard and Xbox.
Reports in May claimed that Tango, Arkane Austin and Alpha Dog Games had been closed, while voluntary severance agreements were being offered to ZeniMax staff. But Krafton – the publisher of the popular PlayerUnknown’s Battlegrounds game – has confirmed the acquisition of Tango and its Hi-Fi Rush IP.
“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 shared with Windows Central.
Krafton also said the move is part of its global expansion plans and its first significant investment into the Japanese video game market. John Johanas, creative director at Tango, posted a report of the acquisition on X and said “We’re back, baby”.
The gaming sector has been suffering this year, with reports of layoffs from multiple companies amid a market slowdown.
Earlier this year, Take-Two Interactive Software, the parent company of Rockstar Games, revealed plans to fire around 5pc of its workforce and scrap several titles in development. In February, Sony Interactive Entertainment laid off roughly 900 staff from its global PlayStation workforce.
Meanwhile, video game services company Keywords Studios is on track to be acquired by EQT Ventures in a £2.1bn deal. The company’s share price dipped significantly last year and CEO Bertrand Bodson described 2023 as a “difficult year for the industry”.
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