“It was a rare opportunity,” Krafton says of the Tango Gameworks acquisition

It hasn't been long since South Korean publisher Krafton decided to save Tango Gameworks, taking over the studio in August after Microsoft decided to close it down just a few months earlier. While Krafton acquired Tango Gameworks, the only IP they acquired with it was Hi-Fi Rush, a BAFTA-winning rhythm game that reached three million players. The decision to close Tango Gameworks came as a big surprise to many, especially after a game as successful as Hi-Fi Rush. Tango Gameworks is also responsible for The Evil Within and Ghostwire: Tokyo, but unfortunately these IPs were not acquired by Krafton.

Krafton now has a dozen studios, including Bluehole Studio, Neon Giant, PUBG Studios and now Tango Gameworks as its 13th acquisition. But they don't want to stop at the acquisitions and continue to expand the library.

Speaking to GamesIndustry.biz, Maria Park, Head of Corporate Development at Krafton, explained how the acquisition came about and what it meant for both Krafton and Tango Gameworks. Park explains that in an attempt to diversify their portfolio, they met with 200 to 300 studios in the last quarter alone to find new developers to invest in. This led to the acquisition of Tango Gameworks, where she immediately flew to Tokyo to meet with Tango.

While most acquisitions involve many employees either being laid off or leaving voluntarily, Krafton has made efforts to retain as many of its existing employees as possible. Of every 100 Tango employees, at least 70 to 80 will move to Krafton, with some positions being filled. However, they expect the numbers to be around 100 by the end of the year or early 2025.

The interview states that Tango was already working on Hi-Fi Rush 2 when Krafton started talking to them. When it came to getting the IP from Microsoft, they were surprised that they were lucky enough to get it. “We have spoken directly to Phil Spencer and have their direct support. He was incredibly responsive to the needs of the Tango team.”

Park says they have been thoroughly researching the Japanese market for a year. “It was difficult to find small to medium-sized studios looking to create their own titles. Many of them were contract studios. It was a rare opportunity.”

Therefore, the acquisition of Tango is the first significant investment in the Japanese video game market, and it is careful to be cautious. “We will definitely continue to pursue opportunities in the Japanese market, but it is not as if we will be actively investing in a large number of studios over a short period of time. Yes, there will definitely be more to come.”

Although the acquisition took a while, most of the Tango team was brought on board in early August, and Krafton spoke to Microsoft once or twice a week throughout August to ensure the acquisition went smoothly.