Last week, IO Interactive announced that it was forced to cut some of its staff after Xbox abandoned funding for the Project Fantasy IP, first revealed over three years ago. Today, the developer has confirmed that it regained complete control of the intellectual property and the project, which it still wants to fund out of its own pockets. However, the downside is that the Istanbul studio, which opened in March 2023, will have to shutter. 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 […]

Read full article at https://wccftech.com/io-interactive-project-fantasy-funding-alone-xbox-bails-istanbul-office/

While IO Interactive are best known for their work on the HITMAN (and now 007) franchise, the team had been working for quite some years on an entirely new IP. Known simply as ‘Project Fantasy’ IOI’s next big gamble has unfortunately hit some roadblocks, with the title set to encounter lay-offs due to relationships with “an external partner” coming to an abrupt end.

IO Interactive’s Project Fantasy has been in development for years, with the mysterious title first being officially announced back in early 2023. While little was known about the project, it was confirmed to be an online-based fantasy RPG of sorts.

Though unsubstantiated, rumours did claim at the time that Project Fantasy was tied into Xbox in some way, with IOI simply stating back then “I don't think any word came out about any specifics about this, so we cannot comment on it.”

This of course all comes into play with the most recent announcement, in which IOI confirmed some less-than-stellar news for Project Fantasy, taking to Twitter to write:

“Today we have to share some more downbeat news. A relationship with an external partner on our own IP, Project Fantasy, has come to an end. This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition.”

IO Interactive continued, “Project Fantasy is a game, a world, and an IP that we absolutely love and remain 100% committed to, now and in the future. This wonderful universe will see the light of day.”

This news comes in the wake of recent reports claiming that Microsoft is moving away from working with 2nd/3rd party studios for Xbox, leading many to wonder whether this was what impacted Project Fantasy.

Regardless, IO Interactive seem to have a lot of faith in the product, and are determined to see it through to the end. Hopefully the team are able to fully realise Project Fantasy – and that it proves to be a success if/when it does eventually release.

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KitGuru says: What do you think of this announcement? Have you been looking forward to Project Fantasy? Is this related to Xbox’s recent shake-up? Let us know your thoughts down below.

The rumored Xbox cuts are underway, with at least five first-party studios potentially closing: Double Fine, Compulsion Games, Ninja Theory, Undead Labs, and Arkane Lyon. But Xbox CEO Asha Sharma is also trimming Xbox's funding for third-party studios: today, they officially pulled out of funding Project Fantasy, IO Interactive's fantasy online action RPG announced in early 2023 and still largely under wraps, given that the Danish developer was busy making 007 First Light. IO Interactive revealed the news in a tweet, confirming that Xbox's decision inevitably forces the studio to lay off staff. However, they also made it clear that […]

Read full article at https://wccftech.com/xbox-funding-purge-io-interactive-rpg-kojima-od/

Aside from 007 First Light and continued development on Hitman: World of Assassination, IO Interactive does have one other game in the works. Codenamed Project Fantasy, this is supposed to be a fantasy-themed action game. 

Project Fantasy has been named in leaks before, but IO Interactive CEO, Hakan Abrak, addressed the topic head-on in a recent interview with The Game Business, describing the game as “in a very healthy place”, despite some turbulence last year with losing a partnership.

While Abrak did not name the partner that pulled funding in the interview, it is widely believed to have been Xbox, as early rumours about the game had linked Xbox to the project.

Abrak did confirm that IO Interactive has secured new funding for the game.

Project Fantasy is still in early development, with the bulk of IO Interactive currently focused on polishing up 007 First Light and getting it ready for launch later this month.

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KitGuru Says: It will be interesting to see what IO Interactive can do with the fantasy genre, although it could be a few more years until this game is ready to be announced properly.