What Really Happen to Tango Gameworks?
Looking behind the curtain at a game studio whom their situation isn't so black & white
The feeling of losing your job is always a punch in the gut, no matter what you do for a living. Very much so within the video game sphere. Since 2021, the number of layoffs and asset sales has continued to increase. Tango Gameworks, founded by a renowned individual, Shinji Mikami, who created Resident Evil to what it became concurrently, was no exception to this purge.
It is a shame but not unfound, as peering into more of their situation shows more in a different light. Yes, Microsoft did not give Tango and other studios they owned over the years a chance. Tango Gameworks themselves, however, weren’t doing so hot behind the scenes either. I’m going to uncover what happened before their breakout hit, which was Hi-Fi Rush.
What Happen?
When Tango Gameworks made their announcement back in May 2024, most people and publications I found discussing their closure always bought up Hi-Fi Rush. Not their other games, which came before… Just that one. Even their official social channels put Hi-Fi Rush before any of their previous titles! I’ll even admit that I didn’t know anything about Tango until Hi-Fi Rush came out on January 25, 2023. I own Ghostwire Tokyo on the Epic game store for free, which they developed and was released on March 25, 2022. I had never thought of looking them up until recently and looking at their past projects on Steam opened my eyes.
I recall enjoying The Evil Within when it was released a decade ago (Wow, ten years ago?). The timeline checks out when Tango Gameworks was founded on March 1st, 2010. Four years later, they made a game reminiscing about Resident Evil, so they hit the ground running. Tango's eventful closure took shape between the company's founding and the development of The Evil Within.
ZeniMax Media
According to the Games Industry. Biz, Tango was acquired by Bethesda’s parent company, ZeniMax, on October 28, 2010. About seven months after Mikami created his company. What he said when the deal became official quoted:
“It’s refreshing to find a publisher who understands, trusts, and supports the development of blockbuster games and works to make it a collaborative effort,” said Mikami. “The library of AAA franchise titles ZeniMax owns speaks for itself. We are very excited to be joining ZeniMax and working with a company that is dedicated to creating the best games ever made.”
Shinji Mikami on the Tango Gameworks acquisition by ZeniMax
I’m sure it was the case back then when Mr. Mikami made a sound business decision. Nobody, not even the creator of Resident Evil himself, could have foreseen Tango Gamework’s future.
Here Comes Microsoft
After all that, Microsoft acquired Mikami’s parent company, ZeniMax, on its official blog on September 21, 2020. Finalizing their purchase a year later, on March 9th.
Tango was developing Ghostwire Tokyo around this time. It was released one year after the ZeniMax purchase on March 29th. One thing that gets left out is that two weeks before Ghostwire's launch, there was a visual novel prequel that you can still play for free.
This is where I think the cracks are starting to form at this point. While not a bad idea to have a companion piece to a main game. Perhaps having it as a separate piece of media and not baked into the game itself, all while having it for free, might be attributed to the overall cost of Ghostwire Tokyo. Also, people who bought & played the game have polarizing views. Either you like it, or you don’t.
Common criticisms of Ghostwire Tokyo include the busywork amplified by the barren open world and a repetitive gameplay loop akin to how Ubisoft designs its games. Despite its uniqueness, Ghostwire Tokyo's potential is hampered by its fatal flaws. It sold well, but not enough for Microsoft, and Hi-Fi Rush also didn’t move the needle for them. Therefore, it is sent to be shelved before another publisher swoops it up.
Back to the Present
Unfortunately, Ghostwire Tokyo laid the foundation for Tango Gamework’s eventful closure. Microsoft's layoffs and selling off their assets accelerated the process. Their last hurrah, Hi-Fi Rush, did well but not enough for Microsoft, so they were set to be canned. Shinji Mikami was long gone by then and founded a new studio, Kamui INC.
Thankfully, Player’s Unknown Battleground publisher Krafton saved Tango from extinction and got the Hi-Fi Rush IP from Microsoft. While not the best idea for them either, it is better than being scrapped altogether. Second chances are rare nowadays, and whoever’s left from Tango Gameworks should seize the opportunity in their new lease of life.
A happy ending despite being an exception to the rule. I wish them the best.
Sources
Krafton acquires Tango Gameworks and Hi-Fi Rush IP from Xbox
Tango Gameworks acquisition will transfer around 50 out of the original 100 staff
The Real Reason Your Favorite Game Studios Are Getting Closed Instead Of Sold
Xbox Executive Hints At Reason For Tango Gameworks Closure
Founder and studio head Shinji Mikami to leave Tango Gameworks
Shinji Mikami founds new studio, Kamuy Inc.
Resident Evil director Shinji Mikami explains why he left Tango Gameworks and founded Kamuy
Interesting read! I think this adds some perspective. It's become reflexive to say "Bad publisher shuts down studio that had a hit game", but there is more nuance here.