IO Interactive is financing its upcoming co-op RPG “Project Fantasy” entirely on its own after the failed publishing deal with Microsoft, and is closing its studio in Istanbul as part of this restructuring.
The Danish development studio is thus responding directly to the Xbox withdrawalIO Interactive, which dropped the title as part of its recent restructuring measures, is drastically consolidating its resources to finance the ambitious project without external funding. This means the closure of its studio in Turkey and layoffs for the team there.
The realignment of IO Interactive
The decision to forgo a major publisher forces the Hitman developers to implement a strict austerity program for side projects. Management is scrapping all plans for external collaborations and potential mobile spin-offs. The focus is now exclusively on the core internal franchises and the completion of Project Fantasy. The studio is thus taking the financial risk of total independence.
Historically, this step is not new for IO Interactive, but it is reminiscent of the split with Square Enix in 2017. Back then, the studio saved the Hitman brand rights and proved that it could be a top-tier indie developer. can surviveIt works if you want it to.
From a technical standpoint, an online fantasy RPG requires a far more massive and long-term server infrastructure than a primarily single-player title. Xbox, with its Azure cloud, would have been a strong partner in this regard. That advantage is gone. Period.
Funding a AAA fantasy project entirely independently ties up all of the studio's resources. On the positive side, the end of Xbox exclusivity means Project Fantasy can now be released as a multi-platform title for PC, PlayStation 5, and potential future consoles. However, the financial risk for IO Interactive is extremely high.
