# 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"

> **Newsylist Open Intelligence Dossier** · First detected: 2026-07-07 17:29 UTC · Category: Technology · Sources: 7 · Current Velocity: 4.63

## Executive Summary
IO Interactive regains full ownership of Project Fantasy after ending its deal with Xbox, leading to studio closures and layoffs.

## Intelligence Brief
IO Interactive has regained full ownership of Project Fantasy following the end of a deal with Xbox. In conjunction with this change, the company is closing its Istanbul studio and initiating developer layoffs.


Coverage from Eurogamer.net, IGN, Wccftech, and Game Developer emphasizes that these measures are being taken to find a "new balance" and ensure the company's survival. The developer, known for the Hitman and Bond titles, is now funding Project Fantasy independently.


Future developments center on how IO Interactive will manage the funding of Project Fantasy alone following the Xbox exit.

## Verified Facts & Key Claims
### What happened to the deal between IO Interactive and Xbox?
The deal has ended, resulting in IO Interactive regaining full ownership of Project Fantasy.

### Which studio is being closed?
IO Interactive is shutting down its Istanbul office.

### Why is the company laying off developers?
According to coverage from Eurogamer.net, the company is implementing layoffs to "find a new balance."

## Key People, Organizations & Locations
Closing, IO Interactive, Survive, Istanbul, Project Fantasy, IO Interactive Doubles Down, Project Fantasy Funding Alone After Xbox Bails Shuttering Its Istanbul Office, Following Xbox Cuts Bond and Hitman Developer IO Interactive Confirms It

## Multi-Source Evidence Table
| Source Outlet | Headline | Published (UTC) | Verification URL |
|---|---|---|---|
| 80 Level | IO Interactive Reclaims Ownership of Online RPG Project Fantasy | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMijwFBVV95cUxPWXAzbUw3WTRjX0htUF8zN0NJa1pEX04wYTBoWUgxVV9MeXotMnUtNGw5OU1CemZleERJSzluaHJqRFpEM1B2UEUtLXpQQS1YUTZZeG83bGRZdTRaQUJBazBHbDUtdFdaaXhCVFZyYXg4OU5uQUt0cUNhcExzcjZFcXpVQTFyUUdsRTlCZW5Cdw?oc=5) |
| GamesIndustry.biz | IO Interactive to shutter Istanbul studio following end of Project Fantasy deal with Xbox | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMiuwFBVV95cUxOalV2bE9sNm55ZXB2V1lPVW51OEpFOVU5bFFJdndGUDFVSjcxblJlWjk4M1VRc1JvSDI0V0FBNU9mZC1XYm41V1dpVDRlZmxWZG1LTXJpeXBfVUxfRkZDRjROa09TMklCeFJwXzlULUtqLXdsT0JsWWcxZWtUTzJWVUN4aGFLeVpHVjNrd3Bsby04eXZFLW11OENDb1FlM2NJX1FMRDBSVVpMdlNweHlEY05GaDZHLWtJdUdN?oc=5) |
| TechPowerUp | IO Interactive Shuts Down Istanbul Studio Months After 007 First Light Smash Hit | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMitgFBVV95cUxPS01nblJTRmVyVDVyVXN3RG1mVUxzcUc3enk4eF9MbkhIWnlIYl9KaXBGQ2p5aE13ZlJMc0FuZlJFZGI2emE5alB2aktOYXJFWGNETVpMenRHYXZFbnpIa0JiNXU5V2xGdVlldG90Y2JXNWdsTnQ2OHMwRHNTeUZjSTY2TkVheWZkbnJrWjhRU3lJOEhOSzRFblJZYTFaRWJRRXlSUEFjYU16WC1uU0JnMVNCSS1Kd9IBuwFBVV95cUxPR28tanRSd2NveDN2bThScWl6VC1jX2tySHpNSHdFQ2tXYW0xU25LOVFwRG5ZYlRyMzhfeXItZ1ZHS0R3MlFDN25EemlDemxGd1hmRnZhdkRZQlFhMVZMaFhfbTNLNk4yZHJKOEpUcXBDYVFlZW4yYlUxeUZ5X2U0TUd6X1JrMVVBeW4yckhmeGdiN1hDc2t1a3FaWTE) |
| Wccftech | IO Interactive Doubles Down on Project Fantasy Funding Alone After Xbox Bails, Shuttering Its Istanbul Office to Survive | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMimAFBVV95cUxQSThCdTQ0WnJvNTdaRFdiUURoaGlJUG4tSExXelpiZWMxSTRmS3U1WVBKYXB2Uk5sRUpha1p5eGNsTjB1NjlLbEZRUjBnLTdDN241ci1IbldkUE1KU1FQb29oRmM0UjZ2RG4wdU9NMGk1OGJaaFRWTFdQYS1lYjhOSkdoOWhOenZrNXprcEFjXzVNbDBJU1lxZNIBngFBVV95cUxQVDl1S1QzdXpaaldTWGE2YjJ3UHRLUEN4Y2ItN2lvaVFIT2tPY3h4bmlzZjFMZS0xS2d1dlQ0Mk1KNWwwZjFMNUNHNGp0NW1wLVU4bXlGZVVpTGRLc0xsZjZrbnpHbm5XLTJDeXNJbmRDT3pMMDROa0RBQ0wyUGlyZmlWTEp2aVEzc2lzQ3BWTnIzemh5a2hNcHg3MUNwZw?oc=5) |
| IGN | Following Xbox Cuts, Bond and Hitman Developer IO Interactive Confirms It is Closing a Studio and Beginning Layoffs | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMiuAFBVV95cUxPSWdBZ1RfTUpKSkpFeWNoRjc5eTA4MC1uNEx5a3BpaEZGbzJHOXZyUmJiY1htN1lYNHNFYU9TVTNwTDI2NlIxQlh2WkVPeWMtWm5lbWUwYUZHbWd1N05OZ3FkS0N6dHhjSGt4VG9ET1FaM2hHSXJwS1U4VHp6eU82NHlkcnB2dmJCOVdkMXBOaVJSUlNFQjFPTHpFbURtX3FkWVliek80bTRTWTNpS1hQTm90RzlwaVpG?oc=5) |
| Game Developer | IO Interactive closing Istanbul studio after regaining control of Project Fantasy | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMivAFBVV95cUxNV2RLczBKY21kTThKNlRWbXk4VE1mVGd2aGtEeXdGdzJ3cWtDamxqSUhicG0yTHgydDVWd2M0NklTLWtRb0QtU1otN1I0YlFOaVVxV2VSUThPS21jQ1RiVDhnZFI4cVJWajQ2NjVmRFFqSHlDVHVyQUIwOEp5OFdjMVNhNkkyVk14NFBHV0VRcGhsLVp1bmxYdjRfTGJCZFMwd0NoOC0taHNMbFNVVUY5b3FBZW9iZmxSc0V4cw?oc=5) |
| Eurogamer.net | 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" | 2026-07-07 14:53 | [Source Link](https://news.google.com/rss/articles/CBMifEFVX3lxTE5FQ1RNMzlnZ0V6T1E3bXFWUnZvaE80ZVFaRXd3U1oxazJmUEdfaHBpeGVNNlZRTEJfNXFDdEw5a0ZxVzlVQjlKVHNMMHQya0VESDQ3a3dpcW52c19md0JZNGdUbVNxQTI0bTlBTXNzR250N084Y2VKVzd5Tkc?oc=5) |

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*Canonical Source: https://www.newsylist.com/trend/2026-07-07/io-interactive-regains-full-ownership-of-project-fantasy-following-end-of-xbox*
*Synthesized by Newsylist Open Intelligence Engine under E-E-A-T journalistic standards.*