IO Interactive to Continue Development on Project Fantasy Independently

IO Interactive has announced that it will persist in developing Project Fantasy following the conclusion of its financial partnership with Microsoft. Project Fantasy is an RPG that has been in development at IO Interactive for some time. Recently, amidst a wave of uncertainty at Microsoft, which included significant job cuts, IO officially terminated its partnership with the financial backer of Project Fantasy, later identified as Microsoft.

In a statement, the developer known for 007 First Light confirmed its commitment to the project, stating, "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 among our other projects."

The statement also addressed the broader changes occurring within the studio, including the closure of the IO Istanbul studio. IO Interactive emphasized the need to find a new equilibrium for the long-term sustainability of the studio, focusing on the success of its core internal titles rather than external projects or potential mobile game adaptations.

As part of this restructuring, the studio mentioned the difficult decision to close the Istanbul location and to part ways with some colleagues who have significantly contributed to IOI's identity. The company expressed its immediate goal of supporting affected employees during this challenging transition, urging anyone aware of job opportunities to assist those seeking new roles.

These decisions, while tough, are deemed necessary to secure the long-term viability of IO Interactive as one of the few fully independent AAA developers and publishers. This strategic shift is also intended to provide Project Fantasy with a robust foundation to thrive under the studio's passion and direction.

Project Fantasy is characterized as a game, a world, and an intellectual property that IO Interactive is fully committed to developing, and the studio expressed eagerness to share it with the gaming community.

In April 2021, it was initially reported by Windows Central that IO had formed a partnership with Microsoft to create a new "dragon-themed IP," which was anticipated to be a first-party Xbox exclusive. By 2023, IO itself confirmed that it was working on an online fantasy RPG, stating, "We are building a new world, a new IP – an online fantasy RPG. A world and a game built from the core to entertain players and expand for many years to come."