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[Spyxos]

IOI eventually managed to buy itself out from under Square—but a recent feature in Edge magazine has cast a little light on just how much worse things could have been for Hitman and IOI in general. We're talking free-to-play Hitman, companies-offering-$1-for-the-whole-studio levels of grim.

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."

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.

www.pcgamer.com

 

[EverydayBeast]

Hitman was dangling in the wind before IO saved it.

 

[Zathalus]

Insert Robocop meme here.

 

[Punished Miku]

I honestly find it incredibly weird that they couldn't manage to make a profit in 10 years but now they can, and the product hasn't changed at all. Same game. Same shit. SQEX was pretty supportive from the sound of it. They even experimented with individual episodes to get people interested. It doesn't really make sense that this studio is still alive.

 

[AJUMP23]

What a save. Really the guy did a great job turning hitman into something amazing. The ultimate playground of fun.

 

[SportsFan581]

I honestly find it incredibly weird that they couldn't manage to make a profit in 10 years but now they can, and the product hasn't changed at all. Same game. Same shit. SQEX was pretty supportive from the sound of it. They even experimented with individual episodes to get people interested. It doesn't really make sense that this studio is still alive.

Well, they said they downsized their staff by about 50% after buying themselves, that's going to help the numbers. Sounds like they are just running with more sanity checks now and avoiding unnecessary bloat.

When you read the statements these companies make, it really seems like having realistic expectations and running your business from that perspective is the way to go. Surprise hits are just extra $ in the bank then.

 

[FeralEcho]

Good on IOI for saving themselves.

 

[vaibhavpisal]

I honestly find it incredibly weird that they couldn't manage to make a profit in 10 years but now they can, and the product hasn't changed at all. Same game. Same shit. SQEX was pretty supportive from the sound of it. They even experimented with individual episodes to get people interested. It doesn't really make sense that this studio is still alive.

I don't trust Square Enix when it comes to make profit from their games. Even after selling millions they can make a loss somehow.

This studio is making a James Bond game, a dragon RPG (whatever that is) alongside Hitman. Seems to be doing fine after the split.

 

[Arsic]

Honestly offering a $1 is just a dick move.

I’d make a list of who all these companies are and post it online to shed light on the douchers.

 

[StreetsofBeige]

"Looking at the books, IO had not made money for almost ten years in a row"

Yikes.

 

[diffusionx]

Honestly offering a $1 is just a dick move.

I’d make a list of who all these companies are and post it online to shed light on the douchers.

if you were getting nothing but a studio that had made a failed game, it makes sense. You're getting a name that doesn't mean much and a bunch of staff you have to pay and keep the lights on in the building etc.

I assume IO had to buy the Hitman IP and the first game back from Square when they went indie, I'm glad they figured it out, but it's all very strange. Makes you wonder if companies like Bizarre could have survived had they not sold in desperation to big publishers.

 

[Arsic]

if you were getting nothing but a studio that had made a failed game, it makes sense. You're getting a name that doesn't mean much and a bunch of staff you have to pay and keep the lights on in the building etc.

I assume IO had to buy the Hitman IP and the first game back from Square when they went indie, I'm glad they figured it out, but it's all very strange. Makes you wonder if companies like Bizarre could have survived had they not sold in desperation to big publishers.

Hitman isn’t some failed IP. It has movies for Pete sakes.

$1 is a dick move. No one would take it. A lowball of $10,000 is acceptable, but $1? Come on.

 

[Punished Miku]

I don't trust Square Enix when it comes to make profit from their games. Even after selling millions they can make a loss somehow.

This studio is making a James Bond game, a dragon RPG (whatever that is) alongside Hitman. Seems to be doing fine after the split.

I think SQEX actually did the best they could. They gave Crystal Dynamics / EIDOS tons of budget and chances, CG trailers for marketing. Same with Deus Ex. Then paid for a Marvel license for both their studios struggling to sell in the hopes of guaranteeing them success. I think they treated them 100x better than Embracer will.

 

[StealthGoblin]

Hitman isn’t some failed IP. It has movies for Pete sakes.

$1 is a dick move. No one would take it. A lowball of $10,000 is acceptable, but $1? Come on.

Companies are bought for a token $1 all the time. Especially if the entity they are buying is loaded with liability.

 

[Mibu no ookami]

I honestly find it incredibly weird that they couldn't manage to make a profit in 10 years but now they can, and the product hasn't changed at all. Same game. Same shit. SQEX was pretty supportive from the sound of it. They even experimented with individual episodes to get people interested. It doesn't really make sense that this studio is still alive.

Employees owning their company have a greater incentive to produce and produce quickly.

You probably had lower salaries and deferred bonuses and profit sharing.

Hitman 3 had an 87 on metacritic. Hitman 2 had an 82. They released 2 games in 3 years... and 3 games in 5 years.

Hitman Absolution was a 79 and the first hitman game in 6 years.

Maybe Square could have kept going after Hitman released, but they had to look at opportunity costs. They should be praised for not just shuttering the studio.

 

[R6Rider]

And here we are with Hitman WoA being one of the best games in the last decade.

 

[Mibu no ookami]

if you were getting nothing but a studio that had made a failed game, it makes sense. You're getting a name that doesn't mean much and a bunch of staff you have to pay and keep the lights on in the building etc.

I assume IO had to buy the Hitman IP and the first game back from Square when they went indie, I'm glad they figured it out, but it's all very strange. Makes you wonder if companies like Bizarre could have survived had they not sold in desperation to big publishers.

Kind of a catch 22.

IOI is a success story today, but they're really one failed game away from being in a tight situation. That's the other side of being a small studio.

I was just thinking the other day, I'm surprised that Microsoft hasn't approached them if their Bond game looks any good.

 

[Go_Ly_Dow]

I think SQEX actually did the best they could. They gave Crystal Dynamics / EIDOS tons of budget and chances, CG trailers for marketing. Same with Deus Ex. Then paid for a Marvel license for both their studios struggling to sell in the hopes of guaranteeing them success. I think they treated them 100x better than Embracer will.

They're up against it under Embracer. Under S-E they were able to ship a fair few games, but a shame it didn't work out in the end.

 

[calistan]

Honestly offering a $1 is just a dick move.

I’d make a list of who all these companies are and post it online to shed light on the douchers.

It isn't a dick move, it's pretty standard given that, as the CEO says, the company hadn't made any money for 10 years.

Glad their management had the willpower and ability to take them independent though. Hitman is a solid #1 on my all-time list, I make sure to buy every piece of DLC they put out for it.

 

[Chuck Berry]

Good on IOI for saving themselves.

Came for this. Success

 

[genesisblock]

I'm glad we're in the timeline where Hitman games are still awesome. If this is how companies treat video game franchises then it's about time studios take back ownership to make great games without this ridiculous expectations of sales.

 

[diffusionx]

Hitman isn’t some failed IP. It has movies for Pete sakes.

$1 is a dick move. No one would take it. A lowball of $10,000 is acceptable, but $1? Come on.

Like I said, I assume the $1 doesnt come with the IP. All you get is the dev, a dev that produced nothing that made money, and then have to invest in it.

 

[BlackTron]

Hitman isn’t some failed IP. It has movies for Pete sakes.

$1 is a dick move. No one would take it. A lowball of $10,000 is acceptable, but $1? Come on.

You can't execute a contract without money exchanged which is the only point of the dollar.

It's not an offer to buy something of value, it's saying "okay let me bail you out by taking on all of your liabilities starting tomorrow"

 

[StreetsofBeige]

IO, you're worth less money than someone parking their car at a meter for half an hour.

 

[Tams]

Well, they said they downsized their staff by about 50% after buying themselves, that's going to help the numbers. Sounds like they are just running with more sanity checks now and avoiding unnecessary bloat.

When you read the statements these companies make, it really seems like having realistic expectations and running your business from that perspective is the way to go. Surprise hits are just extra $ in the bank then.

This.

It's really SquareEnix's fault through mismanagement (as with pretty all their Western devs).

Despite SE being supportive and footing the bill, IO got lost in a massive conglomerate (and a Japanese one at that) and became bloated. The money will have been coming in from all sorts of places and it'll have been a mess with no one willing to take responsibility.

Now they are on their own and if they fuck up it's the clothes on their backs that are at risk if they fail; they have had the necessity and motivation to make the changes (cuts).

 

[vaibhavpisal]

I think SQEX actually did the best they could. They gave Crystal Dynamics / EIDOS tons of budget and chances, CG trailers for marketing. Same with Deus Ex. Then paid for a Marvel license for both their studios struggling to sell in the hopes of guaranteeing them success. I think they treated them 100x better than Embracer will.

SE treated them way better than Embracer would, for sure.

Still puzzled by fate of these studios. Those Deus Ex games got good marketing. Quick Google search says they sold 12 million combined. Nothing to scoff at. New Tomb Raider games sold like 40 million between 3 games. Again, highly impressive.

Something's not right, with a studio as good as this having zero value.

 

[YeulEmeralda]

 

[brian0057]

Hitman was dangling in the wind before IO saved it.

I mean, I agree with the sentiment.
But you make it sound like IO Interactive (the creators of the series and every game in it) wasn't involved with the series before.
Absolution was entirely their idea. If Hitman was "dangling in the wind", that was on them.

 

[CGNoire]

Hitman was dangling in the wind before IO saved it.

One bad title isnt what I would call dangling in the wind.

 

[Euler007]

It's just the smallest unit of consideration to take on all the liabilities. It's zero but you need consideration for a contract to be valid.

 

[Denton]

Wow, unprofitable for a decade? Incredible that they made it through at all. I love Hitman, so I am glad. But damn.

I hope this doesn't mean Agent 47 is retired for good. I know they are making 007 now, but as far as I am concerned 47>007 and not just numerically.

But when they come back to him, they better get Jesper Kyd to rejoin.

 

[Arsic]

You can't execute a contract without money exchanged which is the only point of the dollar.

It's not an offer to buy something of value, it's saying "okay let me bail you out by taking on all of your liabilities starting tomorrow"

That makes sense. I wasn’t aware of the process.

 

[balls of snow]

Ioi gets all the credit. Bought the nu- hitman franchise on multiple platforms. They and Remedy should try to stay independent and just find funding from big pubs.

 

[TrueLegend]

Square Enix - The company always in Perepetual misery or more like they pay too much to too many American lawyers on retainers just they think American law works the same as Japan or something. I mean just look at the games they make....they must be burning some in backyard to make coffee lol

 

[Kerotan]

Honestly offering a $1 is just a dick move.

I’d make a list of who all these companies are and post it online to shed light on the douchers.

If they were losing money it's actually not that insulting.