Tango Gameworks, the Japanese game studio founded by Resident Evil director Shinji Mikami, shocked fans and developers when it abruptly closed its doors in May of this year. However, there is good news – the studio is set to resume its activities under the umbrella of Krafton, a South Korean publisher.

Krafton announced today, 12 August that it has taken over Tango Gameworks with the cooperation of Microsoft and ZeniMax. This move includes the Hi-Fi Rush IP, which Krafton now has acquired rights to.

Tango Gameworks is known for developing The Evil Within series, Ghostwire: Tokyo, and Hi-Fi Rush. The studio, founded in 2010, was quickly acquired by ZeniMax before becoming part of Microsoft following Microsoft’s acquisition of ZeniMax in 2021.

The studio then experienced a setback when Shinji Mikami left Tango after 12 years of establishment. In May 2024, the unexpected announcement was made that the studio would be closing. This decision was perceived as controversial, with some fans and developers criticizing Microsoft for what they saw as the premature demise of a promising studio.

However, two months following the closure of Tango Gameworks, Krafton has stepped in to take over. It appears that Microsoft has cooperated in the integration process and pledged to support the studio’s staff in transitioning to the new company. This marks a significant move for Krafton, as it is their first major investment in the Japanese game market. Krafton now holds the rights to the Hi-Fi Rush IP and expresses its intent to expand the franchise through upcoming projects.

Krafton Inc. shared a press release detailing its plans for Tango Gameworks and the future of the Hi-Fi Rush franchise:

“Krafton Inc today welcomed the talented people of Tango Gameworks to their team, marking a exciting moment in the company’s global expansion and its first significant investment in the Japanese video game market,” the press release reads. “This strategic move will include the rights to Tango Gameworks’ acclaimed IP, Hi-Fi RUSH.”

“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 intends to support the Tango Gameworks team to continue its commitment to innovation and delivering fresh and exciting experiences for fans.”

It seems that franchises such as Ghostwire: Tokyo and The Evil Within will stay under the ownership of Microsoft, at least for the time being. Both Krafton and Microsoft have emphasized that the existing games will not be affected and will continue to be available on Xbox Game Pass and other platforms where they are currently offered.