Hi-Fi Rush studio, shut down by Microsoft, saved by PUBG’s publisher

Krafton, the publisher behind PUBG: Battlegrounds and The Callisto Protocol, has acquired Tango Gameworks, the studio responsible for The Evil Within games and Hi-Fi Rush. Tango was shuttered by Microsoft and ZeniMax Media in May, but the talent who formed the Tokyo-based studio will be integrated into Krafton, which now owns the rights to Hi-Fi Rush.

In a news release, Krafton said it “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 added that it “intends to support the Tango Gameworks team to continue its commitment to innovation and delivering fresh and exciting experiences for fans.”

The move from Microsoft to Krafton will not impact Tango’s existing game catalog, which includes The Evil Within, The Evil Within 2, Ghostwire: Tokyo, and the original Hi-Fi Rush, the publisher said. Hi-Fi Rush is available on PlayStation 5, Windows PC, and Xbox Series X.

Tango Gameworks was founded in 2010 by Shinji Mikami. The studio’s first release, The Evil Within, was a survival horror game in the vein of Mikami’s work at Capcom, where he had overseen survival horror games Resident Evil, Dino Crisis, and Resident Evil 4 as game director. Tango Gameworks became part of Xbox’s stable of studios when ZeniMax was acquired by Microsoft in 2021. Mikami left Tango in 2023.

The studio found great critical success with Hi-Fi Rush in 2023. The rhythm-action game was a surprise release through Microsoft’s Game Pass subscription, and markedly different from the dark and violent games Tango Gameworks had come to be known for.

Krafton’s announcement comes just days after former developers from Arkane Austin, which worked on games Prey and Dishonored, announced a new first-person action RPG at its Wolfeye Studio.

Microsoft announced in May that it planned to close three studios under the Bethesda Softworks umbrella: Redfall developer Arkane Austin, Mighty Doom developer Alpha Dog Studios, and Tango Gameworks. A fourth studio, Roundhouse Games, had its staff reassigned to other duties.