IO Interactive is set to close its Istanbul studio after its Project Fantasy collaboration with Xbox concludes

Due to financial setbacks, IO Interactive plans to shut down its operations in Istanbul. This move comes after the company lost financial support for their online fantasy RPG project, known as Project Fantasy.

The previous week, Xbox terminated its funding and publishing contract for this game. The withdrawal necessitated IO Interactive to make adjustments to its immediate plans, including workforce evaluations.

The organization emphasized that these difficult choices are vital to maintain its long-term status as one of the rare independent AAA game developers and publishers.

According to the company’s announcement, the closure of the Istanbul location meant separating from team members who significantly contributed to the organization's history.

The current priority for IO Interactive is to assist those impacted during this transition.

The Istanbul branch of IOI, founded in 2023, was situated in Sariyer, Istanbul. It was intended to be a hub for AAA game development in Türkiye.

This unit was crucial in contributing to various IOI developments, such as 007 First Light, upcoming Hitman games, and Project Fantasy.

IO Interactive, headquartered in Copenhagen, also operates additional offices in Brighton, Barcelona, and Malmö.

The company has regained sole control over Project Fantasy and its intellectual property. It plans to independently finance and develop the game to ensure its success, driven by the company’s vision and enthusiasm.