Earlier this year 2015 we could read mapinfo files directly by adding them from the Add button. Now it's December and we have downloaded the latest Arc Desktop. We cannot read mapinfo tab files anymore. It opens them as text tables only.
We had to open the *.tab in Google Earth, then save as a KMZ. Then convert in Arc using KML to Layer tool.
Is there a better solution?
Data interoperability extension? Perhaps you had/have it and it is not toggled on in the Customize/extensions menu? Otherwise, apparently QGIS is worth a look
Supported formats with the Data Interoperability extension—Help | ArcGIS for Desktop
Exercise 1a: Using direct-read formats—Help | ArcGIS for Desktop