IO Interactive, the studio behind the James Bond 007 games and the Hitman series, has confirmed significant staffing changes including layoffs and the closure of its Istanbul, Turkey studio. This decision follows Xbox's withdrawal of funding for the developer's in-development online role-playing game, codenamed Project Fantasy.
In a statement released on X, IO Interactive stated the need to "find a new balance for the long-term future of the studio, focused on the success of our main internal core titles." This strategic shift necessitates the closure of the Istanbul studio, which was established in 2023 to support the company's AAA productions, and a reduction in its workforce. The developer expressed immediate focus on supporting affected employees and is actively seeking new employment opportunities for them.
Despite these challenges, IO Interactive has regained full ownership of Project Fantasy and intends to continue its development and funding independently. The company emphasized its commitment to the project, describing it as a world and intellectual property they are "wholly committed to."
These events are part of broader industry trends, with the layoffs at IO Interactive being another casualty of the extensive cuts initiated by Xbox CEO Asha Sharma. Sharma has described Microsoft's gaming division as "not healthy" and has implemented sweeping changes, including 1,600 job cuts and the sale or divestment of several studios such as Double Fine, Ninja Theory, Compulsion Games, Undead Labs, and Arkane. IO Interactive maintains offices in Copenhagen, Denmark; Malmö, Sweden; Barcelona, Spain; and Brighton, U.K.