Xbox's restructuring is still well underway, and before the announcement of more than 1,600 layoffs, which are expected to grow to around 3,200 through FY2027, IO Interactive was working on a title funded and set to be published by Xbox. However, amid the changes at Xbox, that funding was pulled, leaving the future of Project Fantasy uncertain, at least until now. The latest update brings both good and bad news.
IO Interactive, best known for the Hitman series and, more recently, the hugely successful 007: First Light, was working on a game funded by Xbox called Project Fantasy. After Xbox pulled funding, the project's future became uncertain, but IO Interactive has now shared an update on X (formerly Twitter), stating:
"Following the end of our external finance partnership on Project Fantasy... IOI has regained full ownership of the project and our IP... We will continue to develop and fund it independently amongst our other projects..."
Unfortunately, the announcement also came with some difficult news. IO Interactive confirmed the closure of its Istanbul studio, stating:
"We had to find a new balance for the long-term future of the studio... focused on the success of our main internal core titles... This has meant... the closure of our Istanbul studio... and starting a process to part ways with colleagues... These are hard, but necessary decisions... to retain the long-term future of IO Interactive... and to give Project Fantasy the best possible foundation to succeed under our own passion and direction."
The closure of the Istanbul Studio will sadly involve the loss of 40 jobs.
It's great to see IO Interactive retain ownership of the IP and continue developing Project Fantasy independently, but it's equally sad to see the impact on those affected by the closure of the Istanbul studio. As for Xbox, whether ending its funding for the project proves to be the right decision won't be known until the game is released.
One thing is clear, though. Xbox's shift in how and where it invests its money is already having a noticeable impact. Hopefully, those changes ultimately put the company on a stronger path, but let me know your thoughts in the comments and be sure to take part in our poll below:
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