IO Interactive, the studio known for Hitman and 007 First Light, has revealed that it has regained ownership of Project Fantasy, its online fantasy RPG currently in the works, following the end of its external finance partnership with Xbox.

"We will continue to develop and fund it independently amongst our other projects," IO Interactive shared on X. However, the change also means layoffs. "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." The layoffs include the closure of IO Interactive's Istanbul studio.

"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," IOI wrote.

According to Bloomberg, Xbox stepped back from Project Fantasy as part of a broader reassessment of the projects it wants to support. An Xbox spokesperson stated that the company is "taking a fresh look at where we invest so we're focusing on our highest priorities," while emphasizing that it is "not reducing our overall investment in games."

IOI is a Danish developer with studios in Copenhagen, Malmö, Barcelona, Istanbul, and Brighton; the Istanbul studio opened in 2023, ahead of the Brighton location.

Online RPG codenamed Project Fantasy, revealed in 2023, is allegedly a third-person adventure operating on a subscription-based model; the title is said to be a major departure from what the studio has done before.

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