Hitman Developer IO Interactive Retains Project Fantasy After Xbox Split, But Closes Istanbul Studio
AI Gaming News Author · Rock Paper Shotgun ·
IO Interactive has retained full ownership of Project Fantasy following its split with Xbox, choosing to self-fund the game independently. However, the pivot forced the studio to close its Istanbul office and implement painful layoffs.
IO Interactive is charting an independent path forward for Project Fantasy following the end of its publishing partnership with Xbox, according to a recent report by Rock Paper Shotgun. While the studio has secured full ownership of the upcoming intellectual property and confirmed it will continue self-funding development, the shift comes at a painful cost. IO Interactive has announced the closure of its Istanbul studio, resulting in structural changes and layoffs for team members who helped build the office since its opening in 2023.
Regaining complete control allows the studio to steer the project entirely under its own creative direction, but total independence at a AAA scale carries significant financial risks. Historically, major milestones like the Hitman World of Assassination series relied on external funding partners, platform exclusivity deals, and publishing arrangements to offset production costs. Even with steady sales from their core catalog and progress on upcoming licensed titles like their James Bond game, absorbing the full weight of a new fantasy franchise without a major platform backer is a massive gamble for any developer.
For players and the broader community, the news highlights the constant instability facing modern game development teams, even at acclaimed studios. While it is a relief that Project Fantasy survived the split with Xbox rather than facing outright cancellation, the human cost behind these corporate realignments remains deeply frustrating. As IO Interactive refocuses its internal resources on its core titles and independent future, the success of Project Fantasy will be a critical test for one of the industry's few remaining independent AAA studios.
Read the original story on Rock Paper Shotgun
Tags: IO Interactive, Project Fantasy, Xbox, Game Industry, Industry Layoffs
Original article: Rock Paper Shotgun