The game was first rumored in August 2012. In November 2012, 2K Czech, the developer of the original Mafia and Mafia II, announced that the company was working on a “top secret, AAA game”. However, the company was later restructured on January 10, 2014, and the main studio in Prague was shuttered, with resources being allocated to a new headquarters in Novato, California. A new studio called Hangar 13 was established by 2K Games in Novato in the same year. Headed by Haden Blackman, who had previously worked with LucasArts, the studio was said to be working on a new project.
The game was officially teased by 2K on July 28, 2015, and was formally revealed at Gamescom 2015 with a cinematic trailer. Mafia III is set to be released on October 7, 2016 for Microsoft Windows, Mac OS X, PlayStation 4, and Xbox One.
Hangar 13 and 2K Games wanted to stay true to the quality that many users expected over the previous games. The game uses the graphics software Simplygon. The development team were interested in creating a world based on New Orleans, and eventually decided on setting the game in 1968. The team used a collection of old photographs to recreate the world. Various alterations to the world were made to suit the narrative: the bayou and the city have been positioned at close proximity, despite being at a further distance in real Louisiana; the Superdome stadium was being constructed in 1968, but is excluded from the game; and locations such as Canal St. have been omitted from the game for visual aesthetics. The team intended the world to be accessible for high-speed chases. The team also wanted to move away from the stereotypical Italian mafia scene and represent a different side of gang-related crime scenarios. Another aspect of setting a special tone and atmosphere in the game has been the choice of licensed music. Haden Blackman indicated that Mafia III will include a “ton of great music” from the sixties.