IO Interactive Acquires Full IP Rights for Project Fantasy After Partner Split
The move secures IO Interactive's control over its next major original IP, but the studio closure and layoffs highlight the cost of refocusing on core projects.
Reporting from 1 source: Game Spark.
IO Interactive has announced it has acquired full ownership of the IP and project rights for Project Fantasy, its online fantasy RPG. The acquisition follows the end of a relationship with an external partner, believed by some media outlets to be Microsoft. The company will continue development and funding, but will close its Istanbul studio and lay off staff as part of a restructuring to focus on core titles.
IO Interactive has taken full ownership of the Project Fantasy IP and project rights, the studio announced on July 7, 2026. The move comes after the end of a relationship with an external partner, which overseas media reports identify as Microsoft. The company says it will continue development and funding of the online fantasy RPG, first announced in 2023, but will close its Istanbul studio and begin layoffs as part of a restructuring. The studio states that it needs to find a new balance, concentrating on its core internal titles rather than external projects or mobile spin-offs, to ensure long-term survival as an independent AAA developer and publisher. The announcement ends with a statement that the team is fully committed to the project and cannot wait to show it.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.