IO Interactive regains full ownership of Project Fantasy following end of Xbox deal, shuts down Istanbul studio and lays off developers "to find a new balance"

IO Interactive has shut down its Istanbul studio and laid off developers after regaining full ownership of *Project Fantasy*—the *Hitman* series—following the expiration of its deal with Xbox. The move comes as the developer seeks to "find a new balance" after the commercial success of *007: First Light*, which reportedly boosted the franchise’s profile. Coverage from *GamesIndustry.biz*, *TechPowerUp*, *Game Developer*, and *Eurogamer.net* frames the decision as a strategic pivot, though details on the scale of layoffs or future projects remain unspecified.

The closures follow the end of a licensing agreement with Xbox, which had previously distributed *Project Fantasy* titles. Industry observers note the timing coincides with the studio’s recent hit, suggesting a shift in priorities or resource allocation. Reports do not yet specify whether the Istanbul team will be reassigned or if other locations will be affected.

The announcement comes amid broader discussions about developer sustainability in an evolving gaming market. Watch for updates on IO Interactive’s next steps, including potential reallocations of talent or changes to the *Hitman* roadmap. The studio’s decision may signal a broader trend in how mid-sized developers navigate post-launch transitions, particularly after high-profile successes.