IO Interactive has confirmed the closure of its Istanbul studio, leading to an undisclosed number of layoffs. This decision follows the end of a funding partnership with Xbox Game Studios for its upcoming game, Project Fantasy. The studio stated that the termination of this external finance partnership necessitated a rebalancing of resources to focus on its core internal titles.

The closure occurs just two months after the successful launch of 007 First Light, which sold 1.5 million units in its first 24 hours. Despite the layoffs and studio closure, IO Interactive announced it has regained full ownership of Project Fantasy and will continue its development independently. The company expressed commitment to the online fantasy RPG, which is inspired by tabletop games and emphasizes multiplayer and co-op.

This move signifies IO Interactive's shift towards greater independence and internal funding for its projects, including Project Fantasy, Hitman, and 007. The closure of the Istanbul studio impacts staff directly involved with the previous partnership, though the full extent of layoffs beyond this location has not been confirmed. The company is seeking support for affected employees within the industry.