Krafton CEO on Tango Gameworks Acquisition: 'A Creative Move, Not a Financial One'

Krafton CEO Changhan Kim has explained the company’s recent acquisition of Tango Gameworks, emphasizing that the decision was driven by a desire to boost creativity rather than make big profits. Tango Gameworks, the studio behind Hi-Fi Rush, was initially set to close after Microsoft announced in April that it would be shutting down several Bethesda developers, including Tango. However, in a surprise move last month, Krafton, known for PUBG and The Callisto Protocol, stepped in and acquired the studio.

In an interview with Game Developer, Kim clarified that Krafton’s motivation for acquiring Tango was to maintain the studio’s creative spirit, even though its games haven’t been huge financial successes. “We wanted to maintain their legacy,” Kim said, highlighting that Tango had many innovative ideas worth pursuing, even if they weren’t making blockbuster hits.

Kim also shared that the acquisition cost wasn’t a major focus for Krafton. Although he didn’t disclose the financial details, he hinted that the price was neither very high nor very low. More importantly, the deal was not about immediate financial gain. “We don’t think Hi-Fi Rush 2 is going to make us money, to be frank. But it’s part of our attempt to take risks and challenge the market,” Kim explained. He emphasized that the studio’s future projects may not make a huge profit, but they should have the freedom to push creative boundaries.

Tango Gameworks, known for experimenting with different genres, is a perfect fit for Krafton’s broader strategy. Kim believes that allowing developers to take risks and create unique games, even if they don’t always succeed financially, is crucial for long-term success. He described video game development as a “hit or miss” industry but noted that having a diverse lineup of projects helps reduce the risk. “One of them might work out,” Kim said, expressing optimism about the studio’s future.

The acquisition of Tango Gameworks does not include all of the studio’s IPs. Krafton acquired the rights to Hi-Fi Rush but left behind other franchises like The Evil Within and Ghostwire Tokyo, as including those in the deal would have been too complicated. Kim believes that what fans really care about are Hi-Fi Rush sequels, and Krafton is eager to support the team in developing more games within that universe.