IO Interactive says it has regained full ownership of Project Fantasy after the end of its external finance partnership, giving the Hitman studio control of the fantasy RPG but also forcing a fresh round of cuts.
In a new statement from IO Interactive, the studio said it will continue to develop and fund Project Fantasy itself. The decision follows the end of the project’s outside funding arrangement, which previously left IO facing staffing decisions after Xbox reportedly pulled support.
"Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP," IO Interactive said. "We will continue to develop and fund it independently amongst our other projects."
That independence comes with a cost. IO said it has had to find "a new balance for the long-term future of the studio," with a focus on its "main internal core titles" instead of external projects and possible mobile game derivatives. As part of that reset, the company is closing its Istanbul studio and starting a process to part ways with more staff.
IO did not say how many employees are affected. Its previous statement on the Project Fantasy partnership ending said the split would bring "short-term consequences" including staffing decisions, while also saying the studio remained committed to the game.
Project Fantasy stays alive, but under a smaller IO
Project Fantasy is still moving forward. IO said the game is now being given "the best possible foundation to succeed under our own passion and direction," and described it as "a game, a world, and an IP" the studio remains wholly committed to.
The project is a major change of lane for IO, which is best known for Hitman and has also been working on 007 First Light. On IO’s official Project Fantasy page, the studio describes it as a new online fantasy RPG, "a world and a game built from the core to entertain players and expand for many years to come."
The Istanbul closure is especially sharp because IO’s own careers page has described the company as a five-studio operation across Copenhagen, Malmö, Barcelona, Istanbul and Brighton. Istanbul opened in 2023, according to that page, alongside Brighton.
IO has not announced a release window, publisher or platform list for Project Fantasy. The confirmed update is that the RPG is no longer backed by its former finance partner, IO now owns and funds it itself, and the studio is cutting back around that plan.