Square Enix has declared its decision to withdraw from Danish developer Io Interactive. The company made the announcement alongside its financial results for the fiscal year ended March 31, 2017 – released today.

“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 its statement. “As a result, the Company has regrettably decided to withdraw from the business of Io Interactive, a wholly‐owned subsidiary and a Danish corporation, as of March 31, 2017.”

Io Interactive – the developer of Hitman and Kane & Lynch – found itself in the Square Enix stable back in 2009 when the Japanese publisher acquired Io’s parent company, Eidos Interactive.

What the news means for the future of the studio itself and the Hitman series is unclear. Last year’s Hitman Season 1 left the current story in limbo and, as of August last year, Io Interactive was planning for three seasons of the episodic game.

Io Interactive has been focused entirely on the Hitman series since 2013, when the studio laid off half of its staff and cancelled all non-Hitman projects and initiatives.

Word of the split comes alongside news that Square Enix has otherwise enjoyed “record-high net sales, operating income, ordinary income and profit attributable to owners of parent” for the fiscal year.

Luke is Games Editor at IGN's Sydney office and still wants Freedom Fighters 2. You can find him on Twitter @MrLukeReilly.