Krafton CEO Reveals Reason For Buying Tango Gameworks

Key Takeaways

• South Korean publisher Krafton acquired Tango Gameworks in order to preserve the studio’s legacy.
• According to Krafton CEO Changhan Kim, the team was filled with many creative employees worth pursuing.
• Around 50 developers from Tango Gameworks were transferred to Krafton’s Japanese subsidiary to work on new projects.

The head of Krafton explained that the South Korean publisher acquired Tango Gameworks in an effort to preserve the shuttered studio’s legacy. Krafton is the parent company of Bluehole, PUBG Studios, and Unknown Worlds Entertainment, just to name a few.

In June, Microsoft announced the closure of Tango Gameworks, its sole Japan-based development studio. The move shocked many in the industry as the affected team was behind the well-received Evil Within series and, most recently, 2023’s critically acclaimed Hi-Fi Rush, widely regarded as one of the most charming games in Xbox’s already limited portfolio of first-party properties. Krafton, the publisher of PUBG: Battlegrounds and The Callisto Protocol, ended up purchasing Tango Gameworks from Microsoft for an undisclosed amount, and the reason behind the acquisition has finally been revealed to the public.

Krafton CEO Changhan Kim said in an interview with Game Developer that his company wanted to secure as many people from Tango Gameworks as possible to continue the studio’s legacy. According to Kim, the developer’s releases were not considered massive hits, but the team itself was filled with many creatives who were worth pursuing. The head executive added that the cost of the acquisition, which was apparently a last minute deal, was neither too expensive nor too cheap. Kim pointed out, however, that the amount exchanged was not really important to video game giant Microsoft. “We cannot really translate the volume into money. It’s more about the signifcance,” Krafton’s head explained.

Why did Krafton Acquire Tango Gameworks?

• To continue the studio’s legacy.

Around 50 developers from Tango Gameworks were supposed to be transferred to Krafton’s Japanese subsidiary, journalist Stephen Totilo reported. These employees would have continued working on new projects, including an expansion of the Hi-Fi Rush IP that Krafton was also able to acquire. Kim is hoping for Tango Gameworks to contribute to Krafton’s goal of increasing its lineup of games. While the CEO believes that a Hi-Fi Rush sequel would likely be unprofitable for his company, its development would be a part of Krafton’s strategy to produce titles that feel innovative rather than derivative.

Xbox Game Studios head Matt Booty previously alluded to the dissolved developer’s leadership as being a factor in its shutdown. Tango Gamesworks founder Shinji Mikami left the studio in 2023 out of a desire to attain more creative control and to distance himself from the survival horror genre with which he had become largely associated. The veteran game designer revealed that he actually wanted to leave around eight years earlier, but he stayed to finish ongoing projects.

Krafton’s upcoming titles include the isometric roguelike [REDACTED], potential The Sims rival Inzoi, and a mobile version of Dark and Darker. In 2024, the company published Unknown Worlds Entertainment’s Moonbreaker, as well as the Indian market releases of Garuda Saga and Bullet Echo.