Hitman developer IO Interactive has confirmed it will continue to develop Project Fantasy independently after its external partnership with Xbox was dissolved. While the studio maintains it is “100% committed” to the project, the move comes with significant structural changes, including the closure of the company’s Istanbul office.
In a statement posted to X, IO Interactive announced they have regained full ownership of the Project Fantasy IP. The studio stated that this decision was made to ensure the long-term future of the company as an independent AAA developer and publisher. However, the loss of external funding has necessitated a shift in strategy, moving away from support for external projects and potential mobile game derivatives to focus on core internal titles.
The cost of independence
The restructuring process involves parting ways with staff who have contributed to the studio's recent growth. The Istanbul office, which first opened in 2023 with the goal of establishing a regional hub for AAA game development, is being shuttered as part of this new operational balance.
Taking full control of a project of this scale is a significant risk for an independent studio. While IO Interactive has seen commercial success with the World of Assassination series, the company’s history reflects the volatility of independent publishing. The first season of the Hitman reboot was produced under Square Enix, and its successor relied on funding from Warner Bros. Even Hitman 3 was partially supported by a 12-month exclusivity deal with the Epic Games Store.
A history of volatile partnerships
IO Interactive’s recent experience with publishing highlights the challenges of operating without major platform backing. Last year, the studio moved into publishing for Mindseye, an open-world shooter developed by Rockstar alumnus Leslie Benzies. That partnership was marked by poor reviews, internal layoffs, and public allegations of corporate sabotage before the two companies eventually parted ways.
While the loss of Xbox support for Project Fantasy is a major blow, it stands in contrast to recent industry trends where developers are often shuttered entirely during mass layoffs. Instead, IO Interactive has been able to keep the project alive, though the human cost of this independence—specifically the loss of the Istanbul studio and upcoming layoffs—remains a defining feature of the studio's new direction.