IO Interactive has regained full ownership of Project Fantasy, its ambitious RPG, following the end of an external finance partnership with Xbox. The Danish developer announced the change in a statement on X, confirming it will continue developing and funding the project independently alongside its other titles.
"Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP," the studio wrote. "We will continue to develop and fund it independently amongst our other projects."
The change comes with significant restructuring. IO Interactive is closing its Istanbul studio and beginning a process to part ways with staff across its other locations. The studio framed the cuts as necessary to "find a new balance for the long-term future of the studio," with a renewed focus on "main internal core titles instead of external projects and potential mobile game derivatives."
The number of affected staff has not been disclosed. IO Interactive currently operates studios in Copenhagen, Malmo, Barcelona, Istanbul, and Brighton, with more than 400 employees across those locations. The closure of the Istanbul studio, which opened in 2023, marks a significant reversal for the studio's expansion plans, which had added three new locations during the pandemic years.
Project Fantasy was first teased in 2023 as a new intellectual property built for long-term growth, described by IOI as "a world and game built from the core to entertain players and expand for many years to come." The project was being developed in partnership with Xbox, which was providing publishing and funding support. Few concrete details about the game have been shared publicly, though it has been described internally as an RPG designed for broad, long-term engagement with a persistent world.
The end of the Xbox partnership and IOI's decision to fund the project independently raises questions about the studio's broader strategy. The company recently launched 007: First Light, its James Bond game, to strong reviews and significant commercial success, becoming one of the year's most talked-about releases. That title was developed through partnerships including Amazon MGM Studios, and IOI's new focus on "internal core titles" has cast some uncertainty over whether similar high-profile external collaborations will continue in the same form.
For IO Interactive, the shift back to internally developed franchises represents a return to the strategy that defined its independence. The studio completed a management buyout from Square Enix in 2017, emerging as one of the few independent AAA developers in the industry. It went on to self-publish Hitman 2 and Hitman 3, completing the World of Assassination trilogy without external publishing support. That period established IOI's reputation for operating blockbuster franchises on an independent budget.
A return to core franchises seems increasingly likely. IO Interactive's studio head Hakan Abrak confirmed last year that more Hitman titles were planned, and the studio's renewed emphasis on internal IPs suggests Agent 47's next outing could become a higher priority under the restructured operation. The Hitman franchise remains IOI's most commercially reliable property, with the World of Assassination trilogy continuing to generate revenue through regular Elusive Target updates and seasonal content.
The company's Istanbul studio was the most recent addition to its network, opened in 2023 alongside a Brighton location. The studio was intended to expand IOI's development capacity for multiple simultaneous projects, including both Project Fantasy and future Hitman content. Its closure, alongside the restructuring across other locations, suggests the company is consolidating its development resources rather than expanding.
For now, the team at IOI says its immediate priority is supporting the colleagues affected by the changes. The studio has asked its network to help connect departing staff with new opportunities across the industry.
"These are hard, but necessary decisions," IOI wrote, "in order to retain the long-term future of IO Interactive as one of the very few fully independent AAA developers and publishers, as well as to give Project Fantasy the best possible foundation to succeed under our own passion and direction."
Project Fantasy's future is now fully in IO Interactive's hands. The studio is funding development independently, a significant financial commitment for an independent AAA developer, but one that also means full creative and commercial control over whatever the project eventually becomes.
