The landscape of the gaming industry continues to evolve, with strategic moves being made by key players. In a recent conversation with Game Developer, Changhan Kim, the CEO of Korean company Krafton, shared insights into the acquisition of Tango Gameworks, hinting at a broader strategy that may involve further studio acquisitions.
Expanding the Portfolio
Kim emphasized the importance of enhancing Krafton’s “portfolio line-up,” suggesting that the acquisition is just the beginning of a more extensive growth plan. He candidly acknowledged the financial challenges faced by Tango Gameworks, noting that many of their previous titles may not have achieved profitability. “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,” he stated, reflecting a pragmatic approach to the acquisition.
Despite the financial uncertainties, Kim remains optimistic about the creative potential of Tango Gameworks. He articulated a commitment to fostering innovation within the studio, stating, “It’s part of our attempt. We have to keep trying [to develop games] in the spirit of challenge-taking.” This philosophy underscores the inherent risks of the gaming industry, where success can often be unpredictable.
Risk and Reward
In an industry characterized by its hit-or-miss nature, Kim believes that diversifying the project lineup can serve as a risk mitigation strategy. “Having more project lineups is actually a way to mitigate risk, because one of them might work out,” he explained. This approach not only allows for creative exploration but also positions Krafton to capitalize on potential successes amidst the uncertainties of game development.
Looking ahead, Kim hinted at the possibility of expanding the Tango Gameworks team to support new projects. “They have to work on new projects as well, so there is a great possibility the team will scale up even further,” he noted, indicating a forward-thinking vision for the studio’s growth.
Krafton’s acquisition of Tango Gameworks and the Hi-Fi Rush intellectual property earlier this year, following Microsoft’s decision to close the studio, marks a significant shift in the gaming landscape. As Krafton embarks on this journey, the focus on creativity and risk-taking may very well redefine the future of both the company and the industry at large.
