Hitman developer IO Interactive has regained full ownership of its ambitious fantasy project, codenamed Project Fantasy, after its external finance partnership with Xbox concluded. The studio confirmed it will continue to develop and fund the game independently, but this transition has led to the closure of its Istanbul studio and accompanying layoffs.
IOI stated that this move allows them to "retain the long-term future of IO Interactive as one of the very few fully independent AAA developer and publisher, as well as to give Project Fantasy the best possible foundation to succeed under our own passion and direction." The studio aims to refocus on its core internal titles rather than external projects and potential mobile derivatives.
The Istanbul studio, established in 2023, was intended to be a hub for AAA game development in the region. Its closure marks a significant shift in the studio's operational structure.
Taking full responsibility for Project Fantasy presents considerable risks for IO Interactive. While the World of Assassination series remains a financial success, the studio's history shows a reliance on external funding for major projects. The original Hitman trilogy was developed under Square Enix and Warner Bros., with Hitman 3 benefiting from a 12-month exclusivity deal with the Epic Games Store. The success of 007: First Light demonstrates IOI's capability with IPs beyond Hitman, though Bond's inherent global recognition likely eased risk for that venture.
Recent years have also seen IO Interactive navigate challenging publishing endeavors. The studio parted ways with Mindseye, an open-world shooter developed by former Rockstar alum Leslie Benzies, after it received poor reviews and faced internal turmoil. The decision to bring Project Fantasy back in-house, rather than see it canceled, is viewed as a positive outcome amidst broader industry layoffs, though it places a significant financial and developmental burden on the independent studio.