Why did Krafton save the Japanese studio Tango Gameworks?

South Korean publisher Krafton has become the unlikely savior of Japanese developer Tango Gameworks. After Microsoft unexpectedly decided to shut down Tango earlier this year, Krafton stepped in to acquire the studio in August, rescuing it from closure. This rare move in the gaming industry brought back most of Tango’s employees and ensured the survival of their popular hit, Hi-Fi Rush.

Tango Gameworks is now part of Krafton’s growing portfolio, which already includes several studios like PUBG Studios, Bluehole Studio, and Striking Distance Studios. This acquisition marks Krafton’s first significant venture into the Japanese market, signaling its intent to expand further into new territories.

When Tango Gameworks faced closure, Krafton acted quickly. Maria Park, Krafton’s head of corporate development, shared in an interview with GamesIndustry.biz that her team immediately flew to Tokyo upon hearing the news. Krafton recognized that Tango had a strong history of creativity and innovation, despite the departure of its legendary founder, Shinji Mikami. Krafton believed that the studio’s collective talent would carry it forward.

The acquisition was not a typical one, as Tango had already begun winding down operations. Instead, Krafton re-hired most of the staff, with over 70 employees from the original team joining Krafton, and the company plans to fill additional roles to reach a team size of about 100 by early next year. Tango was already working on a sequel to Hi-Fi Rush when Krafton stepped in, and the team will continue to develop the IP, exploring new creative directions while maintaining the high standards of the original.

This acquisition marks Krafton’s first big step into the Japanese gaming market. Park shared that Krafton has been exploring opportunities in Japan for the past year, particularly looking for small to mid-sized studios with a passion for creating original titles. Tango’s acquisition is part of a broader strategy to find talented teams with creative vision, rather than focusing solely on large studios with AAA titles.

Park stressed that Krafton will not interfere with the studio’s vision but will provide the resources and support needed for it to thrive. This includes leveraging Krafton’s expertise in multiplayer and live-service games, which could open new possibilities for Tango’s future projects, including the development of online multiplayer games.