PUBG: Battlegrounds publisher acquires Hi-Fi Rush studio after Microsoft shut it down

Under a cloud of studio closures and layoffs, there's a sliver of sunshine in the gaming business. After being closed by Microsoft in May, Hi-Fi Rush studio Tango Gameworks has been acquired by PUBG: Battlegrounds developer Krafton.

"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 wrote in a press release spotted by Polygon.

Following its $7.5 billion purchase of ZeniMax in 2021, Microsoft shut down three of its studios, Arkane Austin, Tokyo-based Tango Gameworks and Alpha Dog Studios. Tango was behind several notable titles, including The Evil Within, Ghostwire Tokyo and the rhythm-based brawler Hi-Fi Rush. The latter debuted in 2023 as an exclusive on Xbox Series X and PC, and recently came to PS5 in March this year.

Krafton said the acquisition will not affect current Tango games including The Evil Within, The Evil Within 2, Ghostwire: Tokyo and Hi-Fi Rush.

Tango Gameworks was founded in 2010 by Resident Evil 4 game director Shinji Mikami and initially made its name with horror titles like The Evil Within. Hi-Fi Rush was a significant departure and became a critical hit with a 10 out of 10 Steam score thanks to the fluid, engaging gameplay and unique graphical style.