IO Interactive Regains Full Ownership of Project Fantasy, Will Self-Fund Development
Sliver of good news.
The games industry has been hit with wave after wave of bad news over the past two weeks. Widespread layoffs have affected studios of all sizes, and IO Interactive hasn’t been spared. Following the end of its financial partnership for Project Fantasy, the studio announced layoffs and has now shared an update on the project’s future.
IO Interactive to Self-Fund Project Fantasy
IO Interactive has announced that it has regained full ownership of Project Fantasy, which was previously funded by an external partner that, according to Jason Schreier, was Xbox. The studio confirmed that it will continue to develop and fund the project independently alongside its other titles.
As we know by now, the end of this financial partnership came at a cost. IO Interactive is shutting down its Istanbul studio, calling the move one of several “hard, but necessary decisions” required to ensure the company can continue independently funding its AAA projects. While the exact number of affected employees hasn’t been disclosed, the closure of an entire studio suggests the impact is significant.
The team also confirmed that its immediate focus is supporting the employees affected by the restructuring. While the studio was able to retain the rights to its upcoming fantasy title, it’s still difficult to view the overall news as positive.
007 First Light has been a hit, selling more than 2.7 million copies in its first week. It would have been great to see IO Interactive continue riding that momentum, but the announcement coincides with Xbox’s recent restructuring, or “reset’ as the publisher calls it, which has resulted in more than 1,600 layoffs, with additional cuts reportedly planned, totalling 3200 in the coming year. That restructuring also led Microsoft to review its existing partnerships, including its funding agreement for Project Fantasy.
Not much is known about Project Fantasy outside of what IO Interactive shared in its initial press release. The studio describes it as an online fantasy RPG set in an original universe, inspired by classic tabletop role-playing games and fantasy adventures. At the time, IO Interactive also highlighted that all five of its studios were contributing to the project. With the closure of its Istanbul studio, that number has now dropped to four, suggesting the affected team was likely leading the development on Project Fantasy.
In its statement, IO Interactive also confirmed that it will prioritize its internal projects over external ones going forward, likely referring to partnerships such as MindsEye. The studio also mentioned exploring potential “mobile game derivatives,” though it’s unclear whether that refers to ports, dedicated mobile titles, or something else entirely. Hopefully, this renewed focus will help IO Interactive weather the ongoing challenges of AAA game development and continue delivering the high-quality games it’s become known for.
