Krafton Saves Hi-Fi Rush Studio: Half Acquired
Krafton steps in to save the creators of the hit rhythm game Hi-Fi Rush from closure, acquiring half of the studio.
By Nora Belle || Senior Author of ADM
5 min read || August 17, 2024
A Surprise Acquisition
In a surprising turn of events that sent shockwaves through the gaming industry, Krafton, the powerhouse behind PlayerUnknown’s Battlegrounds (PUBG), has stepped in to salvage a significant portion of the critically acclaimed Hi-Fi Rush developer, Tango Gameworks. This move comes hot on the heels of Microsoft’s unexpected decision to shutter the studio, leaving many fans and industry observers stunned.
An Incomplete Rescue
While the news of Krafton acquiring Tango Gameworks was initially met with a wave of relief, the full picture is far from rosy. Instead of acquiring the entire studio, Krafton has opted for an “acqui-hire,” a strategic move where a company purchases another primarily for its talent. In this instance, Krafton is bringing on board approximately 50 developers from Tango Gameworks to join its Japan subsidiary.
It’s crucial to emphasize that this number represents roughly half of the studio’s original workforce. The remaining team members have either found new opportunities within the industry or are actively seeking employment. This means that while Krafton has undeniably saved a significant part of Tango Gameworks, the studio’s legacy and identity are far from intact.
Krafton's Plans for the Future
Despite the reduced number of staff, Krafton has ambitious plans for the acquired talent. The transferred developers will continue to work on new projects, with a particular focus on expanding the beloved Hi-Fi Rush franchise. This news is undoubtedly a boon for fans who were eager to see more of the rhythm-action game’s vibrant world and captivating gameplay.
The decision to pursue an acqui-hire rather than a full-scale acquisition raises intriguing questions about the future of Tango Gameworks and its potential impact on the gaming landscape. While the core identity of the studio may have been diluted, the remnants of the team, under the guidance of Krafton, could potentially birth new and exciting projects.
A Ripple Effect
The closure of Tango Gameworks, even with the partial rescue by Krafton, serves as a stark reminder of the precarious nature of the gaming industry. It highlights the challenges faced by even the most critically acclaimed studios, emphasizing the importance of adaptability and resilience in an ever-evolving market.
Furthermore, the acquisition raises questions about the effectiveness of Xbox Game Pass as a platform for game publishing. While the service has undoubtedly enjoyed significant success, the closure of studios like Tango Gameworks suggests that there might be underlying issues with the model that need to be addressed.
Implications for the Industry
Krafton’s entry into the Japanese gaming market through this acquisition is a strategic move that could have far-reaching implications. The region has long been a cornerstone of the industry, and establishing a foothold there is a significant step for any gaming company. It remains to be seen how Krafton will leverage its newfound presence in Japan to shape the future of the gaming landscape.
The Road Ahead
The acquisition of a portion of Tango Gameworks by Krafton is a complex situation with both positive and negative implications. While it’s undoubtedly a relief to see talented developers finding new opportunities, the loss of the entire studio is a significant blow to the industry.
As we look ahead, it’s crucial to monitor the developments at Krafton’s Japan subsidiary and the progress of the projects being undertaken by the former Tango Gameworks team. The future of Hi-Fi Rush and the potential for new IPs under Krafton’s umbrella will be closely watched by fans and industry analysts alike.
Ultimately, the acquisition of Tango Gameworks is a stark reminder of the ever-changing dynamics of the gaming industry. It serves as a cautionary tale for studios, highlighting the importance of diversification and risk management. It also underscores the need for publishers to carefully consider the long-term implications of their business strategies.
