IOI Shifts Strategy
IO Interactive Closes Istanbul Studio, Funds Project Fantasy Internally After Xbox Exit
Key Points
IO Interactive opened the Istanbul studio in 2023 and has now closed it after roughly three years, with an estimated 20–30 local staff affected by the layoffs.
The end of Xbox Game Studios' external financing triggered IOI to regain full ownership and IP of Project Fantasy and to pursue internal funding and publishing, with the project’s scope potentially changing as a result.
IOI says the restructuring is aimed at preserving long-term viability as one of the industry’s few fully independent AAA developers and publishers, and it emphasizes support for employees affected by the changes and assistance in finding new opportunities.
Project Fantasy is being described as an online fantasy RPG with multiplayer and co-op core gameplay, with initial reports hinting at ambitious concepts such as dragons in a mythic world.
IOI highlighted the ongoing strength of its portfolio, noting the 1.5 million-unit launch of 007 First Light within 24 hours, underscoring its ability to deliver successful standalone titles despite the restructuring.
IO Interactive is closing its Istanbul studio and laying off an estimated 20 to 30 local staff after Xbox withdrew its funding for Project Fantasy, the studio's in-development online fantasy RPG. GamesBeat reported that IOI has now regained full ownership and publishing rights to the game, cutting ties with Microsoft's external financing deal entirely.
The Copenhagen-based studio — known for the Hitman series — says it will fund and publish Project Fantasy on its own. IOI framed the moves as steps to stay viable as one of the few fully independent AAA developers in the industry.
Xbox Exits Deal, IOI Takes Back Full Control
Microsoft's Xbox Game Studios had been co-financing Project Fantasy under an external publishing deal. When that funding ended, IOI moved quickly to reclaim full ownership of the IP. Checkpoint Gaming reported that IOI now holds both the intellectual property and publishing rights to the game outright.
Taking the game in-house comes with trade-offs. IOI warned that the project's scope may change as a result of self-funding. The studio did not give a new release window or budget figure, but said Project Fantasy would now have "the strongest possible foundation" to succeed.
Istanbul Studio Opens in 2023, Closes Two Years Later
IOI opened the Istanbul office in 2023 as part of a broader expansion push. That studio is now being dissolved. Tweaktown reported that an undisclosed number of employees were affected, with estimates placing the figure at roughly 20 to 30 local staff members.
IOI said it is helping affected workers find new opportunities. The company's remaining studios — in Copenhagen, Malmö, Barcelona, and Brighton — will continue to operate normally. No layoffs were announced at those locations.
Project Fantasy Is an Online RPG With Dragons and Co-Op Play
Project Fantasy is described as an online fantasy RPG with multiplayer and co-op at its core. Early reports hint at ambitious ideas, including dragons and a mythic open world. Archy Netys noted the game drew comparisons to large-scale fantasy titles when it was first announced.
Details remain scarce. IOI has not confirmed a platform, release date, or revised scope for the game. What is clear is that the studio intends to see it through — just on its own terms and its own budget.
007 First Light Launch Shows IOI Can Still Deliver Hit Games
Even as the studio restructures, IOI pointed to a recent win. The game 007 First Light sold 1.5 million units within its first 24 hours of launch. Worth Playing reported that IOI used the milestone to signal confidence in its ability to ship successful standalone titles.
The strong launch matters. It shows IOI can generate revenue without a publisher safety net. That financial footing may be exactly what makes self-publishing Project Fantasy a realistic bet — not just a bold one.
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