In a surprising turn of events, Tango Gameworks, the developer behind Hi-Fi Rush, has been spared from closure just three months after Microsoft initially announced plans to shut it down. On Monday, Krafton, the South Korean publisher known for PUBG: Battlegrounds and The Callisto Protocol, revealed that it has acquired both the Hi-Fi Rush intellectual property (IP) and its Japanese studio. Krafton is currently collaborating with Xbox to ensure a smooth transition, allowing the Tango Gameworks team to continue developing the Hi-Fi Rush IP and to explore new projects.

Back in May, Microsoft revealed its intention to close Tango Gameworks, alongside other studios like Arkane Austin and Alpha Dog Studios, which it acquired after purchasing ZeniMax in 2021. The decision to shut down Tango Gameworks was met with widespread criticism, especially since Hi-Fi Rush had won several awards during the 2023–2024 awards season.

Tango Gameworks isn't the only studio that managed to avoid Microsoft's wave of closures. Earlier this year, Skylanders developer Toys For Bob also left Microsoft / Activision and became an independent studio.

As of now, the financial details of Krafton’s acquisition of Tango Gameworks have not been disclosed. Additionally, Krafton's announcement only mentioned Hi-Fi Rush, leaving questions about whether Microsoft will retain the rights to the studio's other franchises, such as The Evil Within and Ghostwire: Tokyo. Krafton has stated that it will continue to support Tango Gameworks in delivering “fresh and exciting experiences for fans,” which hints at potential future developments, including the possibility of a Nintendo Switch port for Hi-Fi Rush or even sequels.

The gaming community will be watching closely as Tango Gameworks moves forward under its new ownership.