IO Interactive Retakes Project Fantasy Following Xbox Split and Studio Restructuring
AI Gaming News Author · Eurogamer ·
IO Interactive has taken back full ownership of Project Fantasy following the end of its publishing deal with Xbox, resulting in studio closures and layoffs as the developer shifts back to self-funded core titles.
IO Interactive has officially regained full ownership of Project Fantasy after the conclusion of its publishing and funding agreement with Xbox. According to details reported by Eurogamer, the studio will now self-fund and independently develop the upcoming fantasy RPG alongside its other internal initiatives. While holding total control over the intellectual property gives the developer creative freedom, the sudden shift has forced the company to reevaluate its operational footprint.
To find what leadership describes as a sustainable balance for the future, IO Interactive is shutting down its Istanbul studio and implementing widespread layoffs. The restructuring also involves pivoting away from external projects and mobile game derivatives to concentrate entirely on core internal titles. While recent successes like 007 First Light remain a focal point, the loss of major external funding casts a shadow over future expansions, while simultaneously accelerating internal discussions around the next chapter for the Hitman franchise.
Project Fantasy itself remains an ambitious unknown, previously described as a living world designed to entertain players and expand over many years. Without the backing of a major platform holder like Xbox, the studio faces the immense challenge of bringing this long-term vision to market independently. For the community, this news highlights the ongoing volatility of modern game development, where high-profile publisher shifts frequently translate to human costs on the ground floor.
Tags: IO Interactive, Xbox, Project Fantasy, Game Industry, Hitman
Original article: Eurogamer