IO Interactive facing layoffs as it cuts ties with Project Fantasy publisher Xbox

IO Interactive has said it’s ended its relationship with the external partner for the in-development game Project Fantasy. The online fantasy RPG has been in development with an as-yet-unannounced partner, but internal documents shared as part of an FTC vs. Microsoft trial in 2023 suggested the partner was Xbox, with the game set to be an Xbox exclusive. Now, as Xbox prepares for reported widespread layoffs, Hitman and 007 First Light developer IO has announced that it has cut ties with its unannounced partner and will have to make “staffing decisions”. Read More...

Jun 30, 2026 - 20:00
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IO Interactive facing layoffs as it cuts ties with Project Fantasy publisher Xbox
IO Interactive has said it’s ended its relationship with the external partner for the in-development game Project Fantasy.

The online fantasy RPG has been in development with an as-yet-unannounced partner, but internal documents shared as part of an FTC vs. Microsoft trial in 2023 suggested the partner was Xbox, with the game set to be an Xbox exclusive.

Now, as Xbox prepares for reported widespread layoffs, Hitman and 007 First Light developer IO has announced that it has cut ties with its unannounced partner and will have to make “staffing decisions”.

Read More...

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