IO Interactive Regains Ownership Of Project Fantasy Following Xbox Split

IO Interactive has announced it has regained full ownership of its in-development online RPG Project Fantasy following its split from an external funding partner last week, which was later confirmed to be Xbox. The studio behind Hitman and 007 First Light will continue working on the project, but this shift means a reduction of its staff.

The Copenhagen-based studio shared a message stating it will now fully fund Project Fantasy independently. However, IO writes that this shift means “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 instead of external projects and potential mobile game derivatives.” To this end, IO has had to make layoffs it had previously stated were necessary after Xbox pulled out of funding Project Fantasy. This includes the closure of its Istanbul subsidiary studio.

“These are hard, but necessary decisions, in order to retain the long-term future of IO Interactive as one of the very few fully independent AAA developer and publisher, as well as to give Project Fantasy the best possible foundation to succeed under our own passion and direction. Project Fantasy is a game, a world, and an IP that we are wholly committed to, and we cannot wait to share the love with you.”

Xbox told Bloomberg it ceased supporting Project Fantasy after reevaluating the types of projects it wanted to invest in. This portfolio adjustment came ahead of the company announcing plans yesterday to lay off 3,200 employees over the next fiscal year, 1,600 of whom were terminated immediately. Xbox also spun off or sold five of its development studios – Compulsion Games, Double Fine Productions, Ninja Theory, Undead Labs, and Arkane Studios – in the midst of this massive restructure, 

For more on IO Interactive, read our review of its most recent release, 007 First Light, here.