IO Interactive will close its Istanbul studio following the loss of funding for its online fantasy RPG, codenamed Project Fantasy.
Last week, Xbox withdrew from its agreement to fund and publish the game, requiring IOI to adapt to the resulting short-term impacts, including “staffing decisions.”
The company stated it has made “hard, but necessary decisions to retain the long-term future of IOI as one of the very few fully independent AAA developers and publishers.”
“This [resulted in] the closure of our Istanbul studio and [parting] ways with colleagues who have been a meaningful part of what makes IOI what it is,” it said.
“Our immediate focus is on supporting those affected as best we can through this period.”
IOI’s Istanbul studio opened in 2023. It was located in Istanbul’s Sariyer district, where it hoped to establish “a foothold for AAA development in Türkiye.”
The team played “a significant role” in all IOI productions, including 007 First Light, future Hitman titles, and Project Fantasy.
IOI is based in Copenhagen, with studios in Brighton, Barcelona, and Malmö.
The developer and publisher has regained full ownership of Project Fantasy and its IP.
It aims to develop and fund the game independently to provide it with “the best possible foundation to succeed under our own passion and direction.”
