Bansi

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Jul 28, 2023
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www.pcgamer.com

Companies were offering a single dollar for Hitman dev IO Interactive when Square Enix was looking to offload it

There's a parallel universe out there where things went much, much worse for our favourite chrome-dome assassin.

"I didn't even have 90 days into taking over [as CEO]," IOI CEO Hakan Abrak told Edge, "and then I got the call from [Square Enix president] Matusda-san: 'We have to divest IO'." It came as a shock, but the nasty arithmetic of it all shook out. "Looking at the books, IO had not made money for almost ten years in a row" by the time Square Enix started looking to divest it, said Abrak, and that fact made acquiring it an unappealing prospect for other potential owners.

"Some companies would offer $1 to take over IO, because of the responsibilities and running costs," said Abrak, while others discussed the possibility of reducing the studio to a fifth of its size and "just [doing] free-to-play with Hitman." Abrak wasn't enthused, telling Square Enix that if that's what the company wanted, "I will do everything I can to make the transition as smooth as I can—but I don't believe in this and I will not be part of it."

"We couldn't pay anywhere near what, potentially, a big company could," said Abrak, though noting that it could have matched the $1 offers, but the studio "Paid what we could, and we came up with a deal where [Square Enix] kept a minority part, kind of a lottery ticket for them." Apparently, that was enough to satisfy IOI's former bosses, who even consented to let the studio keep the various properties it had trademarked prior to its 2009 acquisition.
 

B-Komachi

Alt account
Banned
Sep 25, 2023
1,411
Fucking outrageous. They are among the best devs around

Glad they are doing much better now
 

Milennia

Prophet of Truth - Community Resetter
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Oct 25, 2017
18,317
Those companies can eat shit, glad IO is in a better situation
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
56,216
Free to play hitman lol. How would that even work. First mission is free and monetize new maps? Lmao
 

Mr Evil 37

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Mar 7, 2022
11,481
I still can't believe Square let them do this. You've got to hand it to them.

I'm so happy that IO are in the position they are in now.
 

GrantDaNasty

Member
Oct 27, 2017
3,090
Hitman: Absolution wasn't profitable?

I have my issues with the game but I swear SE announced it sold 3 million, which makes me wonder how much the total budget was.
 

ToddBonzalez

The Pyramids? That's nothing compared to RDR2
Banned
Oct 27, 2017
15,530
Why didn't anyone offer IO Interactive to me for a dollar?
 

Deleted member 158819

Sep 19, 2023
2,257
I guess it kind of makes sense? You aren't just paying the $1, you're paying for them to run at a loss like they had for the past decade. Fortunately, IO seems to have turned things around and looks like they're doing amazing now.
 

Gold!e

Member
Jun 7, 2018
630
Britain
Obviously undervaluing a company that consistently delivers quality games, but it seems like that undervaluing actually helped them since they bought themselves out, right?
 

Lobster Roll

signature-less, now and forever™
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Sep 24, 2019
34,665
It's crazy to read this when you consider just how much quality they output and how high their reputation is today. Having their name attached to James Bond alone has people feverishly excited and confident in a product we haven't even seen yet.
 

Balfour

One Winged Slayer
Member
Oct 25, 2017
7,607
Hitman: Absolution wasn't profitable?

I have my issues with the game but I swear SE announced it sold 3 million, which makes me wonder how much the total budget was.
Its not just a game being profitable

There are numerous operating costs beyond tge budget for the games

Even Tomb raider made money for CD but it didn't make enough once you take everything else in the books to account


Its the same thing here
 

BrickArts295

GOTY Tracking Thread Master
Member
Oct 26, 2017
13,963
The price of CD and Eidos is starting to make a lot of sense now (personally it still doesn't but whatever).
 

Mr Evil 37

Member
Mar 7, 2022
11,481
I like how companies like IO and Remedy are working with lots of different publishers on different big games at the same time, so they have their eggs in multiple baskets and can stay independent and protect themselves from a deal collapsing and killing the studio. It's a very smart strategy.
 
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Bansi

Bansi

Banned
Jul 28, 2023
1,131
Hitman: Absolution wasn't profitable?

I have my issues with the game but I swear SE announced it sold 3 million, which makes me wonder how much the total budget was.
This is the publisher that declared that FF XVI and Tomb Raider sales didn't meet their expectations. FF XVI sold 3 million units in its first week. Tomb Raider sold 3.4 million in two weeks.

Hitman Absolution sold 3.4 million in 4 months.

I have no idea what kind of fantastical accounting happens at Square Enix.
 

Mikch85

Member
May 12, 2018
3,573
It's not stupid expectations when a game is not profitable. Square is not a charity, and apparently no publisher is considering no one wanted to buy IO.
 

Wrexis

Member
Nov 4, 2017
21,442
It's crazy to read this when you consider just how much quality they output and how high their reputation is today. Having their name attached to James Bond alone has people feverishly excited and confident in a product we haven't even seen yet.

As article pointed out:

one of the studio's first moves post-divestment was to hand out redundancies to almost half its staff.

It didn't come easy.
 
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Bansi

Bansi

Banned
Jul 28, 2023
1,131
The last part only applies to Hitman right?
Pretty sure IO doesn't own Kane & Lynch
Yeah.

IO Interactive CEO Hakan Abrak revealed in a 2017 interview that following the developer's divorce from Square Enix, they lost the rights to Kane & Lynch. Kane & Lynch 3 was apparently once in development at IO Interactive, but the reception to both Hitman: Absolution and Kane & Lynch 2: Dog Days resulted in it being cancelled. Losing the rights makes it very unlikely IO will be involved in future titles in the series.
 

vixolus

Prophet of Truth
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Sep 22, 2020
56,216
I'm sure a Hitman designed specifically around F2P would be worse, but the model you described is literally the model the are currently using.

store.steampowered.com

HITMAN™ Free Trial on Steam

Play the beginning of HITMAN for free and become the master assassin.
That isnt available anymore? It makes sense to offer a demo of sorts like this but thats basically just.. a demo? Not building the franchise completely around starting f2p and offering dlc expansions on top.
 

Darryl M R

The Spectacular PlayStation-Man
Member
Oct 25, 2017
9,732
If the company is in the red for a decade, offering anything other than a single dollar doesn't make any financial sense. This sounds pretty standard when it comes to acquisitions, and offering a higher than market price for a company that is valued at a negative is irresponsible and opens the company up to a lawsuit from shareholders.
 
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Bansi

Bansi

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Jul 28, 2023
1,131
Still surprised by this. Basically means that series is dead because Square is obviously never going to do anything with it. Guess it was just a case of being "Well you can have that and get whatever PC sales come off of it"
Square Enix is the asshole ex who will ruin your life, dump you, and then take one of your cats in the breakup just as a final fuck you.
 

Nairume

SaGa Sage
Member
Oct 25, 2017
7,054
This is the publisher that declared that FF XVI and Tomb Raider sales didn't meet their expectations. FF XVI sold 3 million units in its first week. Tomb Raider sold 3.4 million in two weeks.
Wasn't it later revealed that the specific context to Square being pissy about Tomb Raider's sales was that the reboot actually cost a nightmarishly large amount of money when you factored in all the costs that got sunk into the failed incarnations the game took before it landed on the one that finally got made?
 
Oct 28, 2017
3,976
That actually makes sense to buy low, sell high. If you're taking on a company that has bled money for 10 years (toxic asset), offering the absolute minimum to acquire it, strip it down to the bare essentials and turn a profit is capitalism 101. They aren't even worth being a loss leader with that IP.

It's not like companies in the position to acquire IO are doing it because they sure do love the Hitman IP gosh darn it!

Happily, it went in another direction.
 
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Bansi

Bansi

Banned
Jul 28, 2023
1,131
Wasn't it later revealed that the specific context to Square being pissy about Tomb Raider's sales was that the reboot actually cost a nightmarishly large amount of money when you factored in all the costs that got sunk into the failed incarnations the game took before it landed on the one that finally got made?
At the end of the day, it's on the publisher to manage costs. If they were pouring outrageous sums into the development that would require unrealistically high sales to recoup, that's on them.
 

LewieP

Member
Oct 26, 2017
18,180
That isnt available anymore? It makes sense to offer a demo of sorts like this but thats basically just.. a demo? Not building the franchise completely around starting f2p and offering dlc expansions on top.
Ah, there is still a demo, but under a different listing.

I believe it is just one mission.
store.steampowered.com

HITMAN World of Assassination on Steam

Enter the world of the ultimate assassin. HITMAN World of Assassination brings together the best of HITMAN, HITMAN 2 and HITMAN 3 including the main campaign, contract mode, escalations, elusive target arcades and the roguelike inspired game mode HITMAN: Freelancer.

Tbh their initial messaging around Hitman 2016 was very confusing. They changed strategies a few times, before ultimately releasing episodically. Obviously it worked out in the end, and the game is solid, but they did have quite a bit of confusion over the release model.

The trilogy as a whole is a fantastic accomplishment, but it's actually pretty unconventional how it has released. Three different titles with three different publishers, ultimately transitioning into one combined title etc.
 

Hellstruck

Member
Jun 29, 2022
1,333
IO's gotta have one of the best comeback stories in the industry

They're good, but I think Larian is #1. From on the brink of absolute closure, to a desperate Kickstarter for Divinity Original Sin, to now releasing one of the best selling RPGs of all time, breaching the most played Steam charts, and having publishers slobbering over them.
 

Rusty Jacket

Member
Sep 11, 2023
513
Man I really got to give it to IOI for really turning everything around thanks to strong leadership and holding faith for the long term.

All paid off and I'm sure they will never wish to be in that position again.