There's been lots of drama surrounding Xbox's recent studio closures — Hi-Fi RUSH maker Tango Gameworks in particular — but a new quote from Krafton CEO Changhan 'CH' Kim may explain a little bit about why Microsoft decided to ultimately shut down the studio earlier this year.
Speaking with outlet Game Developer, Kim talked about the motivations behind Krafton buying Tango, and how they were primarily creatively-driven rather than for profitability. In fact, the CEO went on to say that "we don't think Hi-Fi RUSH 2 is going to make us money", which is a very surprising admission to hear.
"We can't acquire Tango Gameworks based on their financials or their numbers, right? We don't think Hi-Fi Rush 2 is going to make us money, to be frank,
Tango Gameworks are creative. They want to try something new, and we want to do more of that. [Making] video games is really a hit or miss industry, and that is risk taking. But having more project lineups is actually a way to mitigate risk, because one of them might work out."
This is definitely a commendable take, and it's certainly something you don't hear from company CEOs very often either. Even so, you can understand why Microsoft wouldn't want to keep Tango going if they couldn't make money producing its video games. Phil Spencer has alluded to his job of "running a business" multiple times recently, which explains a lot when it comes to the shuttering of studios like Tango.
Finally, the Krafton exec also said that the company wants "more teams like that" under its umbrella, and we wish both of them good luck with 'Hi-Fi RUSH 2' - even if making a profit seems far from a certainty.
What do we make of these rather frank comments from Krafton, folks? Drop your thoughts on all of this down below.
[source gamedeveloper.com]
Comments 20
I hope it makes an absolute bucket load of profit, just to make Microsoft realise that they closed down a real asset...
I know I’m pretty much guaranteed to buy the sequel, both because I’ll enjoy the game AND I want to reward these folks for giving this studio another chance at life.
It doesn't sound like a long term plan. I guess we should enjoy their second life while it lasts.
Microsoft continues to run xbox like it's nothing but a business.
How's that going?
@BacklogBrad I'm positive they'll be around for the long haul. Also, love your pfp, played Brute Force a lot on my OG Xbox.
Whether we like it or not deep down we all know the truth and how dark this industry is, while franchises like Fornite, Call of Duty or GTA generate millions of profits, games like Hi-Fi Rush barely generate enough to pay the studio's salaries.
If Hi-Fi Rush 2 exists someday, I will certainly support it by buying it, and surely many users of websites like this and social networks will make noise, but let's not fool ourselves, no matter how much noise we make, very few of us will play it, and most will continue playing Call of Duty or GTA.
Remind me not to invest in Krafton lol!
Absolutely loved the first game and can't wait for any potential sequel. I thought Microsoft would have given the team more of a chance but sales numbers on PS5 must have been very low for them to act so quickly after that launch.
The idea of taking several varied risks in the chance that something works is a reasonable business strategy as long as you also have enough stable business to maintain the money to support it. Xbox (and most other large entertainment companies) are moving away from any form of risk taking. We see it most clearly in movies already (sequels/franchises), but games are moving this way too, at least at the AAA level. It will just take longer to see it, since games take so much longer to make.
Anyway, I'm rooting for Tango and will gladly buy Hi-Fi Rush 2, just not on any system made by Xbox. I guess I need to look into what else Krafton makes, because if they are serious about taking creative risks, I'd like to keep an eye on those.
At least someone in an official capacity finally said the quiet part out loud. I think NetEase said the same thing about Grasshopper Manufacture, and I'm sincerely hoping this turns out for the best with both parties.
@InvaderFromSpace I would advise at least a bit of caution. It's good they did this, but Krafton also forcibly rushed The Callisto Protocol out months before it was ready, knowing it wasn't finished but needing something to release in the calendar year. They were guilty of the very same "numbers must go up to feed the endless appetite of our shareholders" thing that's going on with Xbox.
Wait, so they confirmed HFR 2 is being made?
This guy has a more level head than most of the industry. Instead in shoveling god money into one game that must become the next big thing, having variety of diverse content to get more chances of success. I remember when the industry worked that way and grew until the snack food executives took over and made it shrink.
@NintendoByNature lol good catch, sounds like it!
@Elbow I imagine they learned a lot from calisto being a disaster though.
@NEStalgia that's huge news!
@NEStalgia I hope, but knowing how people in charge act.. they probably blame it on the dev team and act innocent.
That's interesting they want a variety of games to attract audiences that may not have given them money with their other products, make every little bit count for something and take risks that way then safe risks, wow that's amazing and what I want to hear. That's great. It's smart too.
Says a lot many other companies don't see things that way. Not all can be long or can be that 1 hit and another one.
Regardless of their parent company and other things they do have the right mindset and I'm all for it.
It’s a fair statement. But not the insult some might take it as. As if you look at sales charts gaming looks a certain way. If publishers aren’t willing to take a few break evens or modest sales while they build a reputation then they have to be willing to copy paste. The mediocre sales (relatively speaking) are the trade off for breaking out in creativity.
@Pabpictu It really doesn't matter if these smaller projects make a massive profit in comparison to what was spent. Because companies like Microsoft are stupid, and instead of looking at a good return for a smaller investment, they complain it didn't make as much as Fortnite, Call of Duty, or GTA and can everyone involved. I'd be terrified if I was a smaller or Indie studio that could be bought out by such inept people right now.
Sadly, Hi-fi rush did absolutely nothing for me - nor Tango's previous output. I think I was pretty niche in not really getting upset about their closure (though I obviously huge have sympathy for the people whose jobs were lost in the shuttering).
@Luminous117 it is the same company that laid off a bunch of the callisto protocol team after that game didnt meet their sales expectations.
Personally I don't believe them here. If the well ever dries up for PUBG, which is really the only success they have had, then I don't know what else they could do. It makes a good headline to say profits don't matter but that's just not a reality for any business especially a publicly traded company with massive investors like tencent.
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