IO Interactive Closes Istanbul Studio After Xbox Funding Withdrawal

IO Interactive is closing its Istanbul studio and laying off developers after Xbox withdrew from an agreement to fund and publish the company's online fantasy RPG, codenamed Project Fantasy. The studio, located in the Sariyer district and opened in 2023, provided development support for Project Fantasy, 007 First Light, and upcoming Hitman titles.

Following the end of the external finance partnership, the company has regained full ownership of Project Fantasy and its associated intellectual property. IO Interactive intends to fund and develop the project independently moving forward.

The company is shifting its strategic focus toward internal core titles rather than external projects or mobile game derivatives. Management stated these measures are necessary to maintain the company's status as a fully independent AAA developer and publisher.