IO Interactive confirms that its previously Xbox-funded game, internally codenamed Project Fantasy, is not being cancelled after Microsoft drops support for the project. Following the funding cut, the studio had said it would remain committed to bringing the “wonderful universe” to players, though it expected staffing impacts. In a new statement, IO Interactive says it has regained full control and ownership of Project Fantasy, including the relevant intellectual property rights. The company adds that it will continue to “develop and fund it independently” alongside its other projects.
At the same time, IO Interactive says the shift away from Xbox support and the resulting restructuring comes with significant costs. Multiple outlets report that the studio is closing its Istanbul office, with layoffs associated with the change. The reports frame the decision as part of adjusting production after Xbox left the project, while the studio continues development using its own resources. The exact timeline for the game’s release is not stated in the coverage.
