PUBG publisher Krafton acquires former Xbox game studio Tango Gameworks and its Hi-Fi Rush IP; in May 2024, Microsoft announced plans to close Tango Gameworks

Tango Gameworks will live on, thanks to Krafton — Krafton, the publisher behind PUBG: Battlegrounds and The Callisto Protocol …

Polygon 2024-08-12 Michael McWhertor

Context & Ripple Effects

Microsoft had announced plans to close Tango Gameworks in May 2024, making Krafton’s purchase a reversal of that studio’s immediate trajectory rather than a conventional expansion from an operating owner.

The deal also fits Krafton’s subsequent posture of using capital to broaden its studio base, including a stated plan to invest in more than a dozen studios in 2025 Krafton’s planned multi-studio investment push.

First-order effects

Tango Gameworks remains active under Krafton rather than being shuttered, while Krafton takes control of the Hi-Fi Rush IP.
Microsoft relinquishes the studio and the named IP, ending its planned closure of Tango as described in the coverage.

Second-order effects

Krafton gains a development team and a recognizable game property outside its PUBG-centered portfolio, giving it another route to build or publish premium console and PC games.
The transaction shows that studios facing closure can become acquisition targets for publishers seeking established talent and IP, rather than disappearing with their former owner’s portfolio rationalization.

Third-order effects

If similar transactions persist, game-publisher consolidation may increasingly include rescues of divested teams and IP—not only purchases of growing independent studios—as buyers seek lower-friction ways to add creative capacity.
The strategic trade-off around platform-held studios becomes more visible: closing or shedding a team can reduce near-term costs but can also transfer future franchise value to another publisher, an instance of Krafton’s broader studio-acquisition activity.

The trend: Game publishers are using acquisitions to diversify beyond flagship franchises, including by picking up teams and IP that larger platform owners choose not to retain.

Discussion

Gameranx Ryan Parreno on x
PUBG Publisher Krafton Acquires And Revives Tango Gameworks With Hi-Fi Rush
Pure Xbox Liam Doolan on x
Xbox's Hi-Fi Rush Studio Tango Gameworks Revived, Acquired By PUBG Publisher
@completexbox Jordan Campbell on threads
This is incredible news, still shocked that Xbox let it slip but nice to see Tango live on!
@johnjohanas @johnjohanas on x
...and this is how it continues. We're back, baby!
@dbakaba @dbakaba on x
Rock on, Tango! ❤️ [image]
@youtheremehere Mihir Sheth on x
Is this.. good news? [image]
@genepark Gene Park on x
finally some good news. it was so unforgivably stupid that xbox announced its closure in the first place.
@dark1x @dark1x on x
Finally some good news.
r/Games r on reddit
“KRAFTON Strengthens Global Presence Through Strategic Integration of Tango Gameworks and Hi-Fi RUSH IP”
r/TwoBestFriendsPlay r on reddit
John Johanas (Director of Hi-Fi Rush) confirms he's at the newly-acquired Tango Gameworks
r/xbox r on reddit
Former Xbox studio Tango Gameworks and Hi-Fi Rush has been acquired by PUBG's Krafton Inc, saving it from closure
r/theevilwithin r on reddit
Former Xbox studio Tango Gameworks and Hi-Fi Rush has been acquired by PUBG's Krafton Inc, saving it from closure. TEW3 IS NOT DEAD I REPEAT TEW3 IS NOT DEAD
r/HiFiRush r on reddit
John Johanas' New Tweet
r/gaming r on reddit
Former Xbox Studio Tango Gameworks And Hi-Fi Rush Has Been Acquired By PUBG's Krafton Inc, Saving It From Closure
r/pcmasterrace r on reddit
Former Xbox studio Tango Gameworks and ‘Hi-Fi Rush’ have been acquired by PUBG's Krafton Inc, saving it from closure
r/PS5 r on reddit
Former Xbox studio Tango Gameworks and Hi-Fi Rush has been acquired by PUBG's Krafton Inc, saving it from closure
r/gamingnews r on reddit
Former Xbox studio Tango Gameworks and ‘Hi-Fi Rush’ have been acquired by PUBG's Krafton Inc, saving it from closure
r/kindafunny r on reddit
Former Xbox studio Tango Gameworks and Hi-Fi Rush has been acquired by PUBG's Krafton Inc, saving it from closure
r/HiFiRush r on reddit
Tango Gameworks and Hi-Fi Rush returns! Purchased by Krafton Inc (Owners of PUBG)

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