Overview
- IO Interactive announced Tuesday that it has regained full ownership of Project Fantasy and will continue its development while funding the project internally.
- The studio confirmed it is closing its Istanbul office and has started a process of layoffs, but it has not disclosed how many employees will be affected.
- Multiple outlets reported that Xbox withdrew its external funding for Project Fantasy before IO reclaimed the IP, a change tied to Microsoft’s wider gaming-business restructuring.
- IO says the staffing and studio changes are a deliberate trade-off to preserve IO’s status as an independent AAA developer and to redirect resources toward its core internal franchises.
- The company has asked the industry and community to help support affected staff, and the situation could affect Project Fantasy’s timeline and future partnerships as IO completes self-funded development.