IO Interactive, the developer behind the Hitman series and 007: First Light, confirms it is closing its Istanbul studio and laying off employees as part of cost-cutting measures. The studio says the changes follow Microsoft’s decision to end its external publishing and funding support for IO’s long-development online fantasy RPG, Project Fantasy. IO Interactive states that it has regained full ownership of the Project Fantasy project and the related IP. With that, the studio says it will continue developing and funding Project Fantasy independently, rather than through the previously external partnership.
In explaining the restructuring, IO Interactive says it is adjusting its business “to find a new balance for the long-term future of the studio,” with a focus on the success of its main internal core titles. The studio also indicates that the cuts affect work across its broader pipeline, including efforts described as external projects and potential mobile game derivative work. IO characterizes the studio closure and layoffs as difficult but necessary steps intended to preserve the company’s longer-term prospects while ensuring Project Fantasy has what it describes as a foundation to succeed under its own direction. Reports also note that the specific number of layoffs is not disclosed.
