IO Interactive Closes Istanbul Studio Amid Layoffs and Funding Changes
Originally published Jul 7, 2026
By Eddie Makuch · GameSpot
AI-generated summary based on GameSpot · Aggregated by GamingCurve · Human-reviewed and approved on Jul 7, 2026
Key points
- IO Interactive is closing its Istanbul office and laying off staff due to funding cuts from Xbox.
- Xbox withdrew funding for Project Fantasy, leading to IO retaining full ownership and funding the project independently.
- The studio aims to focus on core titles and long-term stability after restructuring.
IO Interactive, the developer of Hitman and 007: First Light, has confirmed the closure of its Istanbul office and layoffs as part of restructuring efforts following Xbox's withdrawal of funding for Project Fantasy. The studio now retains full ownership of the project and will fund it independently. These cuts were described as necessary to ensure the long-term stability of the company and focus on core titles. The decision to close the Istanbul office and lay off staff was described as 'hard, but necessary' to secure the future of the studio. Microsoft's shift in investment strategy has led to the withdrawal of support for several projects, including Project Fantasy and a potential sequel to 007: First Light.
Read the original story: GameSpot — by Eddie Makuch