Hitman and 007: First Light developer IO Interactive has confirmed that it is closing its Istanbul office, laying off staff in the process as part of cuts that the studio said were “necessary” to help the company stay afloat in the future. IO said it made these cuts after Xbox dropped out of funding Project Fantasy, the company’s mysterious upcoming RPG. IO has now “regained full ownership of the project and our IP” related to Project Fantasy, and IO will…