IO Interactive has announced it has regained full ownership of its in-development online RPG, Project Fantasy, following a split with its external funding partner, which has been confirmed as Xbox.
The Copenhagen-based studio will now fully fund Project Fantasy independently. This shift necessitates a reduction in staff to "find a new balance for the long-term future of the studio, focused on the success of our main internal core titles instead of external projects and potential mobile game derivatives," according to a statement from IO Interactive. As a result, layoffs have occurred, including the closure of the studio's Istanbul subsidiary.
IO Interactive emphasized its commitment to Project Fantasy, stating, "Project Fantasy is a game, a world, and an IP that we are wholly committed to, and we cannot wait to share the love with you." The studio believes these decisions are necessary to secure the long-term future of IO Interactive as an independent AAA developer and publisher and to provide Project Fantasy with the best possible foundation for success under its own direction.
Xbox confirmed to Bloomberg that it ceased support for Project Fantasy after reevaluating its investment priorities. This portfolio adjustment comes amid broader restructuring at Microsoft, which recently announced plans to lay off 3,200 employees and sold or spun off five of its development studios: Compulsion Games, Double Fine Productions, Ninja Theory, Undead Labs, and Arkane Studios.