IO Interactive keeps Project Fantasy after its Xbox publishing relationship ends

IO Interactive regained full control of Project Fantasy and will continue independently after Microsoft ended the external funding relationship, but the change also led to studio cuts.

IO Interactive says it will continue developing Project Fantasy independently after its external funding and publishing relationship with Microsoft ended. The Hitman developer retained full ownership of the online fantasy RPG and remains committed to the project.

The transition came with significant operational consequences, including the planned closure of IO's Istanbul studio and workforce reductions elsewhere. The case demonstrates both sides of IP ownership: retaining the project gives the developer freedom to continue or seek a new path, but replacing a large publishing budget can still require painful changes in scope and staffing.