Despite changes around funding, the Danish studio is continuing development, but it has had to make difficult decisions to do so.

IO Interactive has announced that it is forced to reduce staff after the external financing partnership for Project Fantasy came to an end. At the same time, full ownership of the fantasy IP, first revealed more than three years ago, has returned to the Danish team.

The studio confirmed that it still intends to develop and fund the project independently. That comes at a serious cost: IO Interactive is closing its Istanbul office, which opened in March 2023, and parting ways with several employees.

Dear gaming community,

Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP. We will continue to develop and fund it independently amongst our other projects. With this context, we had to find a new…

– IO Interactive (@IOInteractive) July 7, 2026

“Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP. We will continue to develop and fund it independently amongst our other projects.”

“With this context, we had to find a new balance for the long-term future of the studio, focusing on the success of our main internal titles instead of external projects and potential mobile-game derivatives.” IO Interactive wrote.

According to the studio, this means changes and proposed changes across all offices. These include closing the Istanbul studio and beginning a process to say goodbye to colleagues who played important roles in IOI’s history.

“Our immediate focus is to support those affected as best we can during this period. If you know of any opportunities in your network, we would be sincerely grateful for any support you can provide to IOI’s talented people who may be looking for new opportunities.”

“These are hard but necessary decisions to preserve the long-term future of IO Interactive as one of the few fully independent AAA developers and publishers, and to give Project Fantasy the best possible foundation for success under our own passion and direction.” the company stated.

IO Interactive also emphasized that it remains fully committed to Project Fantasy. The studio sees it as a game, a world, and an IP that still matters deeply, and it intends to share its passion for the project with fans later.

The situation is especially bitter because IO Interactive recently enjoyed major success with 007 First Light. Critics responded warmly to James Bond’s gaming return, and the title also performed well commercially.

Project Fantasy, however, is a different kind of undertaking. The game is being developed as an online fantasy action RPG, a world the developers intend to expand over many years.

Early concept art and developer comments suggest a classic high-fantasy atmosphere. Elves, humans, dwarves, armor, weapons, vast plains, and party-based adventures are taking shape, with the tone leaning toward a grand journey rather than an overly dark world.

IO Interactive has also previously said the project draws inspiration from the Fighting Fantasy book series. According to the studio, the game may feel familiar, but it will still differ from everything it has made before.

Source: WCCFTech