Hitman Studio Announces Layoffs and Closure, Yet Fantasy RPG Project Continues

IO Interactive, known for titles like 007: First Light and Hitman, has announced staff layoffs and the closure of its Istanbul studio following the withdrawal of funding from Xbox for its upcoming online RPG, Project Fantasy. However, the developer has regained full ownership of the project and plans to continue its development independently.

In a statement shared on X, IO Interactive emphasized the need to “find a new balance for the long-term future of the studio, focused on the success of our main internal core titles.” This shift necessitated the closure of the Istanbul studio and the difficult decision to part ways with valued team members.

The studio expressed its commitment to supporting affected employees during this transition and is seeking assistance in helping them find new opportunities.

“These are hard, but necessary decisions to ensure the long-term future of IO Interactive as one of the few fully independent AAA developers and publishers, as well as to provide Project Fantasy with the best possible foundation for success under our own vision,” the statement read. “Project Fantasy is a game, a world, and an IP that we are fully dedicated to, and we look forward to sharing it with you.”

Last week, IO Interactive hinted at potential “staffing decisions” after an “external partner,” identified by sources as Xbox, ceased its support for Project Fantasy. While layoffs were anticipated, the closure of the Istanbul studio, established in 2023 to support major projects like 007: First Light, came as a surprise. IOI still operates offices in Copenhagen, Malmö, Barcelona, and Brighton.

These job losses are part of broader cuts initiated by new Xbox CEO Asha Sharma, who is working to reform Microsoft’s extensive gaming division, which she has described as “not healthy.” Recently, Sharma announced 1,600 job cuts, with another 1,600 expected over the next year, alongside the sale or divestment of five game studios: Double Fine, Ninja Theory, Compulsion Games, Undead Labs, and Arkane.