Hi-Fi Rush 2 was in development before Bethesda shut down Tango Gameworks

Tango Gameworks had already been working on a Hi-Fi Rush sequel for about half a year before Microsoft and Bethesda shut down the studio.

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Bethesda's abrupt shuttering of Tango Gameworks came as a surprise to gamers, especially given Hi-Fi Rush's apparent success. Even though the innovative rhythm game reached 3 million players across Xbox Game Pass, Tango was still closed down (alongside other groups like Arkane Austin).

Despite the first game's success, Tango wasn't just waiting around and had already started work on Hi-Fi Rush 2. According to Krafton VP of corporate development Maria Park, Tango Gameworks had an early build of their sequel in development shortly before the South Korean publisher moved in to resurrect the team.

In recent interview with GamesIndustry.biz, Park explains what Tango was up to, and also says that Microsoft gaming CEO Phil Spencer has done what he can to ensure Tango lives on at Krafton:

"When we look at Tango, all the games they've released were unique in their own way. Their philosophy and craftsmanship have aligned with what we pursue. We had big fans of Hi-Fi Rush and other titles, and I knew they were working on Hi-Fi Rush 2 when we started talking. We thought we could carry on that legacy and offer more creative ways to keep the game updated.

"We spoke with Phil Spencer directly and we have their direct support. He has been incredibly accommodating to the needs of the Tango team."

Krafton has confirmed that it will only acquire the Hi-Fi Rush IP, and other franchises like Ghostwire Tokyo and The Evil Within will stay under Bethesda/Microsoft.