IO Interactive Confirms Project Fantasy Will Move Forward

IO Interactive has confirmed that Project Fantasy will remain in development after regaining full ownership of the game and its intellectual property (IP). The update follows the end of the studio's external financing partnership with Microsoft (Xbox). The announcement was shared on IO Interactive's official X account, days after reports confirmed Microsoft had ended funding for the RPG during its wider Xbox restructuring.

The studio announced that it will now develop and fund Project Fantasy independently alongside its other projects. It added that the change required a broader restructuring.

The goal is to focus on its core internally owned games instead of external projects and potential mobile game derivatives.

IO Interactive Closes Istanbul Studio While Backing Project Fantasy

Project Fantasy has been linked to Microsoft since 2021. At the time, Windows Central reported that Xbox was backing a new dragon-themed IP from IO Interactive. In 2023, the developer officially confirmed it was creating a new online fantasy RPG built around an original universe designed to grow over many years.

As part of the restructuring, IO Interactive confirmed it is closing its Istanbul studio. It has also begun a process to part ways with some employees. The company noted its immediate priority is supporting affected staff.

It also encouraged the wider games industry to help those looking for new opportunities.

IO Interactive called these "hard, but necessary decisions." It said the changes are intended to secure its future as an independent AAA developer and publisher. The studio also noted that they will give Project Fantasy "the best possible foundation to succeed under our own passion and direction."

Although Microsoft's financial support has ended, Project Fantasy remains a significant project for IO Interactive. The studio now has full ownership of the IP and will continue development under its own direction.