Square Enix released the results of their fiscal year that ran from April 1, 2016, until March 31, 2017, today. Despite finishing in the black and reporting record net sales—with 20% growth year over year largely attributed to the releases of Deus Ex: Mankind Divided and Final Fantasy XV—the company also officially filed an “extraordinary loss” on March 31, 2017 of 4.9 billion yen ($43 million US dollars). In a separate statement, Square Enix detailed this loss came in the form of a “withdrawal from the business of” IO Interactive, the Danish developer behind the Hitman and Kane & Lynch series of games. Simply put, Square Enix is getting rid of them, not quite Agent 47 style, though.

IO Interactive began in its current form back in 1998 and released their first game, Hitman: Codename 47, with publisher Eidos Interactive in 2000. In 2003, IO became a subsidiary of Eidos, who were then in turn acquired by Square Enix in 2009.

“To maximize player satisfaction as well as market potential going forward, we are focusing our resources and energies on key franchises and studios,” Square Enix said in the press release. “As a result of this, the Company started discussions with potential new investors and is currently in negotiations to secure this investment. Whilst there can be no guarantees that the negotiations will be concluded successfully, they are being explored since this is in the best interest of our shareholders, the studio, and the industry as a whole.”

With all signs from IO Interactive up to now pointing to the first season of the episodic Hitman experiment being a success, this development might explain why they’ve been quiet since announcing season two was already in development back in November 2016. If they were on the verge of changing owners/publishers, they would want to stay quiet for as long as possible for legal reasons. Square Enix’s press release also points out they’ve been shopping IO since March 31, and the language of the release makes it sound like they’ve got some potential buyers, at least for the moment. If negotiations can be worked out, IO Interactive should, theoretically, end up no worse for wear.

Should negotiations fall through, however, Square Enix will likely shut the studio down. In that case, I would imagine Square Enix would retain the rights to IO’s IP, like Hitman, and could then sell those off individually to potential buyers, assign them to another studio, or let them languish until the time is right to potentially bring them back. Of course, even should negotiations that successfully save IO occur, there’s always the chance Square Enix tries to retain some of those key IP.

In terms of what spurred all this, we have no specifics on how profitable Hitman was for Square Enix. Although it seems to have had a solid install base with the first episode, it is hard to tell how many people carried through for the entire season, and we have no sales numbers on the full season disc release that occurred in January. This development, however, leads us to believe the game clearly underperformed, and likely did not sell as well as IO’s previous game, Hitman: Absolution, which sold over three million units in its first five months back from the end of 2012 through early 2013.

If we were to speculate on potential candidates to be IO’s new parent company, there’s definitely a few—particularly if the IP can be secured along with the studio. Surely the Hitman brand would be a great asset in most publisher portfolios. European publishers THQ Nordic and Deep Silver have both made it a habit of snatching up unwanted studios and IP in recent years, and their relatively close proximity to IO’s Copenhagen headquarters could make them very enticing. Someone like EA could also look at Hitman’s episodic nature and the potential for microtransactions and start licking their chops.

There could also be first-party interest for such a well-known brand. Square Enix has worked closely with Sony for many years, but the smart bet if first-parties got involved might be Microsoft. A second episodic season of Hitman would be a great steal away from Sony, could easily offer cross-play with PC, and serve as a potential exclusive reveal at E3 2017 for a company desperate for software this year—although that would assume Microsoft and Square Enix were actually close to an agreement considering we’re only a month away from the event. But the buzz potential that could surround the first episode of a new Hitman season launching alongside Microsoft’s new Game Pass program sure would be enticing.

Be sure to keep coming back to EGM for more as this story develops, and hopefully IO Interactive doesn’t end up like so many NPCs that have crossed Agent 47’s path. In the meantime, feel free to check out my review of the full first (and maybe only) season of the episodic Hitman.

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