Hitman and 007: First Light developer IO Interactive has confirmed that it is closing its Istanbul office, laying off staff in the process as part of cuts that the studio said were “necessary” to help the company stay afloat in the future.
IO said it made these cuts after Xbox dropped out of funding Project Fantasy, the company’s mysterious upcoming RPG. IO has now “regained full ownership of the project and our IP” related to Project Fantasy, and IO will now fund it independently. However, this meant that IO had to pull back in other areas, including efforts for “external projects and potential mobile game derivatives.”
“We had to find a new balance for the long-term future of the studio, focused on the success of our main internal core titles,” IO said. “This has meant making changes as well as proposed changes across our studios: the closure of our Istanbul studio and starting a process to part ways with colleagues who have been a meaningful part of what makes IOI what it is.”
Closing the Istanbul office and laying off staff were “hard, but necessary decisions” made to “retain the long-term future of IO…” The developer said its structure as a fully independent AAA developer and publisher is a rarity in the modern gaming landscape. Making the cuts also gives Project Fantasy “the best possible foundation to succeed under our own passion and direction.”
In June, IO signaled that layoffs were coming due to Xbox pulling out of Project Fantasy, but this was the first confirmation of the details and the specifics regarding the closure of the Istanbul office.
In addition to Project Fantasy, many want to see IO make a sequel to 007: First Light after the game’s critical and commercial success, but it remains to be seen if that will happen.
Microsoft stopped funding Project Fantasy as part of its renewed focus on the games and franchises it believes will make the most money. Microsoft said it is not reducing its overall investment in games, but what’s changing is where the company is investing. Clearly, games like Project Fantasy, along with the next game from the creator of Assassin’s Creed are not part of that vision. Xbox was also going to fund the next game from Naughty Dog veteran Bruce Straley before backing out.
For more, check out the story below:
- Xbox Layoffs, Studio Changes, And Spin-Offs: Everything Announced In Big Shakeup