Overview
- IO Interactive announced on Tuesday, June 30 that a relationship with an external partner for Project Fantasy had ended and that immediate staffing decisions, including layoffs, were underway.
- Bloomberg and multiple outlets confirmed the unnamed partner was Xbox, which told Bloomberg it is refocusing where it invests in games rather than cutting total gaming spend.
- IO said it remains “100% committed” to Project Fantasy and will continue development while exploring self-publishing or a new publishing partner.
- The number of employees affected is not public; IO said it will support those impacted during the transition and gave no timetable for rehiring or project milestones.
- Industry reporting links the move to a wider Xbox reset under CEO Asha Sharma that could include mass layoffs, studio sales or closures, a pattern that has previously led to projects being shelved or shifted to other publishers.