Krafton Says Tango Gameworks Acquisition Wasn't About Profit: 'We Don't Think Hi-Fi Rush 2 Is Going to Make Us Money’

PUBG publisher Krafton has stated that its purchase of Tango Gameworks from Microsoft wasn't driven by profit, with CEO Changhan Kim acknowledging, "we don't expect Hi-Fi Rush 2 to make us money."

Speaking to Game Developer, Kim explained that Krafton stepped in after Xbox announced the studio's closure, emphasizing their commitment to preserving its legacy and fostering creativity. Despite Tango Gameworks, known for titles like The Evil Within, Ghostwire: Tokyo, and Hi-Fi Rush, not achieving widespread success, Krafton saw potential in their creative vision.

"We wanted to uphold their legacy," Kim noted. "Even though their games weren't massive hits, we believed their creativity was worth supporting. That’s why we pursued this partnership."

Kim added that the acquisition wasn’t based on financial expectations, saying, "We don't think Hi-Fi Rush 2 is going to make us money, but it’s part of our broader efforts to diversify. The gaming industry is risky, but expanding our portfolio helps mitigate that risk. Tango Gameworks' creativity is valuable to us."

While Tango Gameworks’ past projects may not have been financially successful, Kim described the acquisition deal as neither too expensive nor cheap, with Microsoft's focus not on the price but on facilitating the transfer.

Krafton announced the acquisition on August 13, three months after Microsoft disclosed the studio's closure. Only Hi-Fi Rush's intellectual property was transferred in the deal, as Krafton prioritized simplicity to expedite the process and minimize stress for Tango's already anxious employees.

"Hi-Fi Rush sequels were important to fans," Kim said, explaining that they wanted to avoid overcomplicating the deal. Krafton retained around 50 of the 100 employees, and while the remaining staff likely found jobs elsewhere after the closure was announced, Kim hinted at possible future expansion.

Despite Hi-Fi Rush's success, with Microsoft and critics praising it as a breakout hit, Tango Gameworks faced shutdown over a year later. Krafton’s acquisition, however, ensured the studio’s survival and continuity.