IO Interactive closes Istanbul studio and regains control over Project Fantasy after Xbox funding

In brief

• IO Interactive has regained full control of Project Fantasy after ending its partnership with Xbox.
• The studio is closing its Istanbul location and making layoffs to rebalance its operations.
• The impact of these changes on future game development remains unclear.

IO Interactive, the developer behind the popular Hitman and 007 franchises, has recently made a major strategic decision. After ending its partnership with Xbox, the studio has regained control of Project Fantasy, an online RPG announced in 2023. However, the closure of the Istanbul studio and the announced layoffs are a direct response to that split. The exact number of affected employees has not been disclosed, but the consequences for morale and productivity among the remaining staff are significant.

IO Interactive is now shifting its focus toward internal core projects rather than external collaborations or mobile spin-offs. That could mean the studio will concentrate more on refining existing franchises such as Hitman and the new 007 title, 007: First Light. The closure of the Istanbul studio is part of a broader restructuring designed to help the company adapt to the new reality after losing external funding.

GAME-scanner analysis

IO Interactive’s decision to refocus comes at a crucial moment. With Project Fantasy still in the pipeline, this shift could affect the game’s development and timeline. The studio appears to be positioning itself as an independent developer, but it remains uncertain how this strategic move will affect the quality and release of future titles. A stronger focus on internal projects could bring both risks and opportunities for creativity and innovation.

What does this mean for players?

For players, this means the future of Project Fantasy is now entirely in IO Interactive’s hands. That could lead to a more cohesive vision for the game, but the uncertainty around development and the impact of the layoffs may also raise concerns. Players will have to wait and see how these changes affect the release and quality of future titles.