IO Interactive Reclaims Project Fantasy Rights Following Split from Xbox

IO Interactive has officially reclaimed full control of its ambitious online RPG, Project Fantasy. This strategic pivot follows the dissolution of the studio’s partnership with an external financier—confirmed to be Xbox—which unfortunately necessitated a round of internal workforce reductions.

In a formal statement, the Copenhagen-based developers behind the Hitman franchise and 007 First Light confirmed that they will now self-fund the title. However, the studio emphasized that this transition requires a “new balance” for its long-term viability, shifting focus toward their core internal projects rather than external collaborations or mobile spin-offs. As a direct consequence of the funding withdrawal, IO Interactive has implemented staff layoffs and closed its satellite office in Istanbul.

“These are challenging, yet essential decisions to secure the future of IO Interactive as one of the few remaining fully independent AAA studios and publishers,” the team shared. “We are profoundly committed to the world and IP of Project Fantasy, and we look forward to pouring our creative passion into bringing this vision to life.”

The split follows Xbox’s recent decision to overhaul its development portfolio. According to reports from Bloomberg, Microsoft withdrew support for the project after re-evaluating its investment priorities. This move aligns with a broader restructuring effort at Xbox, which includes a sweeping reduction of 3,200 staff members over the upcoming fiscal year and the divestment or closure of five major studios, including Ninja Theory, Arkane Studios, and Double Fine Productions.

For more on the studio’s latest work, you can read our review of 007 First Light here.

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