IO Interactive has regained full ownership and control of its ambitious upcoming RPG, codenamed Project Fantasy, following the termination of a publishing and funding agreement with Xbox. This shift necessitates a business readjustment, including the closure of the studio's Istanbul location and layoffs.
"Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP," the company stated on its official X account. "We will continue to develop and fund it independently amongst our other projects."
The developer plans to find "a new balance for the long-term future of the studio" by concentrating on the success of its "internal core titles" rather than external projects or mobile game derivatives. While not explicitly mentioned, this strategic pivot casts uncertainty on potential future installments or collaborations related to the 007 game, First Light, and partnerships with Amazon MGM Studios.
In conjunction with the withdrawal of Xbox funding and a renewed focus on internal intellectual property, IO Interactive is implementing changes that include closing its Istanbul studio. The company also announced it is "starting a process to part ways with colleagues who have been a meaningful part of what makes IOI what it is." The exact number of employees affected by these layoffs has not been disclosed. This follows similar statements regarding staff reductions made last week, coinciding with the news of the RPG's partnership ending.
The return to "core titles" suggests that IO Interactive may prioritize the development of its next Hitman installment. Last year, the studio's head, Hakan Abrak, confirmed plans for more games in the Hitman series. Under the current circumstances, the next project within the assassin franchise could become a more significant focus. Project Fantasy has been described as "a world and game built from the core to entertain players and expand for many years to come," though details regarding its specific genre, such as whether it is a large-scale MMORPG, remain undisclosed.