Square Enix has introduced intentions to divest possession of IO Interactive, the Danish studio behind the Hitman sequence.
In a statement to its investors, the Japanese writer reported what it described as an “extraordinary” $42 million loss for the monetary yr ending March 31, 2017. This is a results of the corporate’s resolution to to slender its deal with key franchises and studios.
“To maximize player satisfaction as well as market potential going forward, we are focusing our resources and energies on key franchises and studios,” it mentioned within the assertion. “As a consequence, the corporate has regrettably determined to withdraw from the enterprise of [IO Interactive], a completely‐owned subsidiary and a Danish company, as of March 31, 2017.
“This resolution has resulted in reserving of the extraordinary loss amounting to four,898 million yen, together with disposition of the content material manufacturing account associated to the enterprise and impairment lack of intangible property, within the monetary outcomes for the fiscal yr ended March 31, 2017.”
The assertion signifies that the loss comes not solely from its resolution to dump IO Interactive, but additionally stop manufacturing on its ongoing initiatives, which doubtless consists of extra Hitman episodes. Square Enix went on to state it has begun discussions with new buyers that would doubtlessly buy IO Interactive.
“Whilst there could be no ensures that the negotiations shall be concluded efficiently, they’re being explored since that is in one of the best pursuits of our shareholders, the studio and the business as an entire.”
The wording would not present any assurance on the way forward for IO Interactive if a brand new investor is not secured, although it may imply the studio is closed and its employees displaced. Furthermore, it is unclear whether or not the sale of IO Interactive would additionally embody mental properties for any of the video games it has developed.
In August of final yr, IO Interactive mentioned it was planning to release two more seasons worth of Hitman content. However, splitting the property from its developer may imply this by no means involves fruition. Of course, it is also new investor is ready to negotiate the acquisition of the property together with the studio.
The information comes as a shock, given the optimistic response to Hitman and the joy for extra of it. Additionally, IO Interactive recently rebranded itself and moved to a new studio in Copenhagen.
For it is half, IO Interactive indicated it’s staying centered on creating video games amidst the uncertainty.
@NEOkeitaro Thanks for tweeting us. There’s quite a bit occurring proper now and we’ll have extra to say at a later level. For now, again to creating video games.
— Io-Interactive (@IOInteractive) May 11, 2017
Square Enix grew to become IO Interactive’s dad or mum firm when it acquired Eidos Interactive in 2009. In addition to Hitman, the studio is thought for creating the Kane & Lynch sequence, in addition to underrated action-adventure sport Mini Ninjas. A job itemizing noticed in February additionally indicated IO Interactive was working on a new IP.
This information comes as a part of Square Enix’s announcement of its monetary outcomes for the fiscal yr that ended March 31, 2017. Despite what you would possibly assume given the IO Interactive information, Square Enix loved document internet gross sales (up 20% year-over-year) and working revenue (up 20.three%). This was attributed partially to the discharge of massive video games like Final Fantasy XV and the PS4 model of Rise of the Tomb Raider, in addition to “robust obtain gross sales of beforehand launched catalogue titles.”
This story has been up to date with extra particulars concerning Square Enix’s financials.