Microsoft closed Tango Gameworks earlier this year, as part of a round of layoffs that saw various Xbox studios closed. Tango was known for games like the aforementioned high-octane rhythm-brawler Hi-Fi Rush, as well as survival horror franchise The Evil Within. Tango was initially established in 2010 by Shinji Mikami of Resident Evil fame, with the studio coming across to Microsoft as part of the ZeniMax acquisition.
"Krafton Inc today welcomed the talented people of Tango Gameworks to their team, marking a exciting moment in the company's global expansion and its first significant investment in the Japanese video game market," the press release reads. "
This strategic move will include the rights to Tango Gameworks' acclaimed IP, Hi-Fi RUSH."
The fact Hi-Fi Rush is heading across also heavily suggests that a sequel will most likely emerge from the partnership. However, franchises like Ghostwire: Tokyo, and The Evil Within will remain with Microsoft. Both Krafton and Microsoft emphasized that there will be no impact on the existing catalog of games, which will remain available in Xbox Game Pass and other storefronts they're presently on.
In a statement to Windows Central, a Microsoft spokesperson shared the following:
"We're working with Krafton to enable the team at Tango Gameworks to continue to build games together and we look forward to playing their next great game. There will be no impact to the existing catalog of Tango games."