Hitman studio IO Interactive cuts staff and closes Istanbul studio after Xbox pulls out of fantasy project

IO Interactive, the developer behind the upcoming James Bond game Project 007, has confirmed layoffs and the closure of its Istanbul studio. The cuts follow Xbox's departure from Project Fantasy, a separate project that the studio says it will now continue developing independently. IO Interactive stated that it has regained full ownership of the fantasy title and will proceed without the platform holder's involvement, according to Polygon.

polygonIO Interactive confirms layoffs and Istanbul studio closure after Xbox exits Project Fantasy

"This isn't the sort of thing that should be happening a month after the release of a major, successful game like 007 First Light, but such is the way of the games industry."

PC GamerIO Interactive says Project Fantasy isn't dead, but confirms that layoffs are happening

PC Gamer noted the jarring timing of the layoffs, which come shortly after the studio shipped a well-received James Bond game. The report underscores the volatility of game development, where even a hit release does not shield a studio from restructuring.

"The studio says it has regained full ownership of Project Fantasy and will continue development independently."

Polygon reported that these cuts are part of broader Xbox restructuring that has affected multiple studios. IO Interactive now controls the full rights to Project Fantasy, which will continue as a self-funded project, though the closure of the Istanbul office suggests a scaling back of operations.