IO Interactive, the developer behind the Hitman series and 007: First Light, has confirmed the closure of its Istanbul office and a subsequent reduction in staff. These decisions were described by the studio as "necessary" for the company's future financial stability. The move follows Xbox's withdrawal of funding for Project Fantasy, IO Interactive's unannounced role-playing game.
Following Xbox's decision, IO Interactive has regained full ownership of Project Fantasy and its associated intellectual property. The studio plans to fund the RPG independently. This shift in strategy has necessitated a restructuring, leading to the closure of the Istanbul studio and layoffs. IO Interactive stated that these changes are aimed at finding a "new balance for the long-term future of the studio, focused on the success of our main internal core titles." The company emphasized that maintaining its structure as an independent AAA developer and publisher is a rarity in the current gaming industry.
The layoffs and studio closure are intended to provide Project Fantasy with the "best possible foundation to succeed under our own passion and direction." In June, IO Interactive had signaled potential layoffs after Xbox's funding withdrawal for Project Fantasy, but this announcement provides the first concrete details regarding the office closure and staff departures. The developer acknowledged that parting ways with colleagues who contributed significantly to the studio was a difficult but essential step.
While fans have expressed interest in a sequel to the critically and commercially successful 007: First Light, the future of such projects remains uncertain as IO Interactive recalibrates its focus. Xbox's decision to cease funding for Project Fantasy is part of a broader strategic shift by Microsoft to concentrate investment on games and franchises deemed most profitable. Microsoft has stated that this does not represent a reduction in its overall investment in gaming, but rather a redirection of its funding priorities. Games like Project Fantasy and titles from other developers, such as Bruce Straley's next project, appear to fall outside this renewed vision.