IO Interactive has confirmed that it will keep working on Project Fantasy, the RPG the studio has been developing for several years, now that its financial partnership on the game has come to an end.

The news follows a stretch of uncertainty for the Hitman and 007 First Light developer. Last week, IO announced it had ended its relationship with the outside partner funding Project Fantasy, later confirmed to be Microsoft. That announcement came in the same week Microsoft confirmed plans to cut five studios and thousands of jobs across Xbox.

Dear gaming community,

Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP. We will continue to develop and fund it independently amongst our other projects. With this context, we had to find a new…

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— IO Interactive (@IOInteractive) July 7, 2026

In a new statement, IO Interactive said it has taken back full control of the project. The studio said it has “regained full ownership of the project and our IP” and plans to “continue to develop and fund it independently” alongside its other games.

The statement also touched on wider changes happening at the studio, including the closure of IO Interactive’s Istanbul office. The company said it needed to find a new long term balance, shifting its focus toward its main internal titles rather than external projects or mobile spin-offs. This has led to the Istanbul closure as well as job losses at other parts of the studio.

IO said its immediate priority is supporting the staff affected by these changes, and asked others in the industry to pass along any job opportunities for the employees who are now looking for new roles.