# Waterdeep-set Project Fantasy to continue as IO Interactive shuts Istanbul studio

- URL: https://talkfuse.com/story/after-split-with-xbox-hitman-developer-io-will-continue-to-develop-project-fantasy-independently-but-theyre-closing-their-istanbul-studio/
- Published: 2026-07-10T14:39:02+00:00
- Updated: 2026-07-11T12:14:35+00:00
- Original publisher: Rock Paper Shotgun
- Original article: https://www.rockpapershotgun.com/after-split-with-xbox-hitman-developer-io-will-continue-to-develop-project-fantasy-independently-but-theyre-closing-their-istanbul-studio
- Topics: Entertainment, Gaming, Software, Technology

## Key points

- IOI will fund Waterdeep-set Project Fantasy independently after Xbox pulled out.
- Its Istanbul studio is closing, with layoffs following.
- IOI regains full ownership of the project and its IP.

## Summary

IO Interactive, the studio behind the Hitman series, has confirmed it will continue developing its fantasy RPG, Project Fantasy, independently after Xbox withdrew its financial backing. The move matters because it keeps a major project alive and preserves IOI's status as one of the few fully independent AAA developers and publishers, but it has come at a heavy price: the closure of the studio's Istanbul office and layoffs among staff. Having regained full ownership of the project and its intellectual property, IOI says it will now fund the game itself alongside its other titles.

The Istanbul studio, opened in 2023, had been intended as a regional hub for AAA game development. IOI framed the closure as a way to refocus on its core internal titles rather than external projects and potential mobile spin-offs. The article notes the considerable risk in shouldering Project Fantasy alone: past Hitman games were variously funded by Square Enix, Warner Bros and an Epic Games Store exclusivity deal, while the studio's recent publishing venture, Leslie Benzies' Mindseye, flopped badly amid poor reviews, layoffs and a subsequent parting of ways. IOI's other non-Hitman effort, the Bond game 007: First Light, benefits from an established brand, underlining how Xbox's support had made Project Fantasy a more palatable gamble.

## Coverage

- [Rock Paper Shotgun: Waterdeep-set Project Fantasy to continue as IO Interactive shuts Istanbul studio](https://www.rockpapershotgun.com/after-split-with-xbox-hitman-developer-io-will-continue-to-develop-project-fantasy-independently-but-theyre-closing-their-istanbul-studio)
- [Eurogamer: Project Fantasy returns to IO Interactive as Xbox deal ends and Istanbul studio closes](https://www.eurogamer.net/io-interactive-regains-control-project-fantasy)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.