IO Interactive Shut Down Its Office in Istanbul—But the Studio Is Still Working on Project Fantasy

Recent layoffs within Xbox division, made by Microsoft, affected a significant number of studios, including Bethesda, id Software, Arkane Studios, and many others. However, layoffs also took place at a studio not owned by Microsoft, which shows just how routine this has become. We're talking about IO Interactive, the developer behind one of the year's major hits, 007 First Light.

On its social media, the studio confirmed the closure of its office in Istanbul, stating it needs "to find a new balance for the long-term future of the studio." Although the developers admitted it was a difficult decision, the number of affected employees has not been disclosed. IO Interactive also assured fans that this move will not impact the development of Project Fantasy, an upcoming online project announced back in 2023, which still doesn't have a release date or details about what it is. You can check out IO Interactive's official statement regarding the closure of its Istanbul division below:

Dear gaming community,

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. With this context, 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 instead of external projects and potential mobile game derivatives. This has meant making changes as well as proposed changes across our studios: the closure of our Istanbul studio and starting a process to part ways with colleagues who have been a meaningful part of what makes IOI what it is.

Our immediate focus is on supporting those affected as best we can through this period. If you are aware of any opportunities within your network, we would be genuinely grateful for any support you can offer to any of the talented people across IOI who might be looking for new opportunities.

These are hard, but necessary decisions, in order to retain the long-term future of IO Interactive as one of the very few fully independent AAA developer and publisher, as well as to give Project Fantasy the best possible foundation to succeed under our own passion and direction. Project Fantasy is a game, a world, and an IP that we are wholly committed to, and we cannot wait to share the love with you.

It is also worth noting that, last week, the studio confirmed that Project Fantasy has lost its publisher. That same day, Bloomberg's Jason Schreier confirmed it was supposed to be Xbox Game Studios. As of now, it remains unknown who the game's new publisher will be.

While specific details about Project Fantasy remain unknown, IO Interactive has confirmed it will be a team-based MMORPG, inspired by Fighting Fantasy, and that the studio aims to bring unique features to the game—elements it previously used in the Hitman series. The potential release date and platforms remain unknown as well.