adminIO Interactive’s Istanbul studio closure follows Xbox’s decision to end its funding and publishing agreement for Project Fantasy, the developer’s online fantasy role-playing game. The change has prompted staffing decisions as IO Interactive adjusts its plans and seeks to protect its long-term independence.
Image credit: IO Interactive
Why the IO Interactive Istanbul studio closure is happening
Xbox recently withdrew from its agreement to fund and publish Project Fantasy. IO Interactive said the change created immediate challenges for the company, including decisions affecting its workforce. As part of its response, the studio will close its Istanbul office and separate from colleagues who contributed to the company’s work.
IO Interactive described the move as a difficult but necessary step to preserve its future as an independent AAA developer and publisher. The company has also said that supporting the people affected by the closure is an immediate priority.
For readers following the news, it is useful to distinguish the studio closure from the status of the game: the loss of Xbox’s deal does not mean IO Interactive has announced that Project Fantasy is cancelled.
What the Istanbul team worked on
IO Interactive opened its Istanbul studio in 2023 in the Sarıyer district. The company aimed to build a presence for AAA game development in Türkiye. The team contributed to IO Interactive productions, including 007 First Light, future Hitman titles and Project Fantasy.
IO Interactive is headquartered in Copenhagen and also has studios in Brighton, Barcelona and Malmö. The Istanbul closure concerns that location; it does not, by itself, indicate that the company’s other studios are closing.
Project Fantasy after the Xbox agreement
Following the end of the agreement, IO Interactive regained full ownership of Project Fantasy and its intellectual property. The company intends to develop and fund the game independently, under its own creative direction.
No release date or revised development schedule was included in the information provided about the change. Players interested in the game should look for official updates before drawing conclusions about its timing, scope or future availability.
What the announcement means for employees and players
For affected employees, the closure means the end of the Istanbul studio and a separation from IO Interactive. The company has stated that it is focused on supporting colleagues through the transition, but specific details about individual arrangements have not been provided.
For players, the key confirmed points are that IO Interactive now controls Project Fantasy and plans to continue developing it independently. The studio’s future announcements will be the clearest source for news about progress or release plans.
Conclusion
The IO Interactive Istanbul studio closure followed the end of Xbox’s Project Fantasy funding and publishing deal. Although the Istanbul office is shutting and colleagues are affected, IO Interactive has regained the game’s rights and says it intends to carry on independently. Readers should follow official updates for further details about the game and the company’s plans.
