Imagine being so down on your luck that companies are starting to offer just a dollar to buy everything you’ve worked so hard for. While this doesn’t happen often, when it does, it’s a gut punch, and that’s likely how the famous Hitman studio, IO Interactive, felt many years ago.
A recent feature in Edge magazine sheds light on the studio’s tumultuous past, revealing how close it came to being sold for as little as a dollar during a period of severe financial strain.
Back in 2016, the release of Hitman marked a pivotal moment for IO Interactive. Despite the game’s eventual success, its initial performance failed to meet the expectations of its then-owner, Square Enix. This disappointment led Square Enix to consider selling the studio, pushing IO Interactive into a precarious position. Fortunately for the studio, the market’s response was disheartening, with some companies offering a mere dollar to take over, due to the high operational costs and responsibilities involved.
Hakan Abrak, CEO of IO Interactive, recalls this period as a particularly challenging time. The studio, under Square Enix’s ownership, had not turned a profit for almost a decade, significantly diminishing its appeal to potential buyers. This is even after several relatively successful games from 2006 through 2015 with a live-action adaptation in 2007 that actually made five times more than its budget at the global box office. The proposals floated during this time included drastic measures like reducing the studio to a fraction of its size and pivoting Hitman to a free-to-play model, neither of which Abrak was willing to support – ironically, certain sections of Hitman World of Assassination trilogy have since become free to try for those interested.
In an unexpected turn of events, IO Interactive’s dire situation led to an opportunity for self-purchase. Though the studio couldn’t match the financial muscle of larger companies, it managed to negotiate a deal with Square Enix, which involved the studio paying what it could afford and Square Enix retaining a minority share as a form of a “lottery ticket.”
The road to independence wasn’t easy. One of IO Interactive’s initial steps post-divestment was to lay off nearly half its staff, a decision that was undoubtedly difficult but necessary under the circumstances. However, this marked the start of a remarkable turnaround. Since gaining independence, IO Interactive and the Hitman franchise have seen a resurgence in popularity and success, culminating in the widely celebrated Hitman 3, which saw things come full circle for the franchise, at least based on the ending.
While most studios would’ve been “okay” with its recent string of successes, IO Interactive isn’t stopping anytime soon. After giving birth to one of gaming’s most iconic assassins, it’s now trying to live up to loftier expectations with a proper video game adaptation of James Bond.
While 007 has seen his fair share of video game adaptations over the years, IO Interactive’s upcoming game, based on the story of the first James Bond, promises to merge IO Interactive’s expertise in stealth and action gameplay.
Reflecting on the journey, it’s evident that the challenges faced by IO Interactive weren’t unique in the AAA video game industry. Many large publishers, including Square Enix, have grappled with similar issues, often leading to decisions that appear disconnected from their audiences and the market. However, IO Interactive’s story stands as a testament to the resilience and potential of game studios when given the autonomy to chart their own course.
The saga of IO Interactive’s near-demise and subsequent revival serves as a stark reminder of the volatile nature of the gaming industry. It’s proof of the importance of strategic decision-making, the value of creative freedom, as well as the resilience required to navigate the challenging landscape of game development.
IO Interactive’s experience is a powerful narrative of overcoming adversity, reinforcing the belief that even in the most dire circumstances, dedication and passion can lead to unexpected success.
