Danish video game developer IO Interactive has announced the closure of its Istanbul studio, a decision directly linked to the end of a development deal with Xbox for the online fantasy role-playing game known internally as Project Fantasy. The closure will affect all staff at the Turkish location.
The announcement, made via a social media post from the studio, confirms that the loss of funding for the project was the primary driver behind the decision. IO Interactive, best known for the Hitman series and the recently announced James Bond game, Project 007, had opened the Istanbul office in 2020 to support the development of a major new online fantasy RPG.
Background on Project Fantasy and the Xbox Partnership
Project Fantasy was first revealed as IO Interactive’s ambitious entry into the online fantasy role-playing game genre. The project was being developed in partnership with Xbox Game Studios, with the specific role of Xbox in the deal being one of publisher and financial backer. The deal, however, has now concluded, leaving the project without its primary source of funding.
The Istanbul studio was established specifically to assist in the development of this project. With the cancellation of the partnership, IO Interactive has determined that it cannot sustain a studio dedicated to a project that is no longer moving forward. The company has stated that it is working to support affected employees during the transition.
Impact on the Istanbul Team
The closure represents a significant setback for the local game development community in Istanbul. The studio was a relatively recent addition to IO Interactive’s global network, which also includes studios in Copenhagen, Denmark and Malmö, Sweden. The exact number of employees affected by the closure has not been publicly confirmed, but the studio was considered a critical part of the company’s expansion strategy for online and live service games.
In a statement regarding the development, the company emphasized that the decision was a direct business consequence of the terminated agreement and not a reflection of the team’s performance or the quality of their work. Employees have been informed, and the company is expected to offer severance packages and outplacement assistance.
Looking Ahead for IO Interactive
Despite the closure of the Istanbul studio, IO Interactive continues to operate its other facilities and remains focused on its existing projects. The company is actively developing Project 007, a James Bond game that is being created from the ground up with an original story, and is also continuing support for its Hitman World of Assassination trilogy.
The company has not provided a specific timeline for the full wind-down of the Istanbul operations. However, based on standard corporate procedures for studio closures, the process is expected to be completed within the coming weeks. The future of Project Fantasy itself remains uncertain, with no indication that IO Interactive will seek a new publishing partner for the title.
Source: GamesIndustry.biz
