Overview
- IO Interactive said a relationship with an unnamed external partner has ended and disclosed staffing decisions after the change in funding, a development the studio announced Tuesday.
- Bloomberg reported the partner was Xbox, and an Xbox spokesperson told the outlet the company is taking a fresh look at where it invests while saying it will not reduce overall spending on games.
- IO confirmed the staffing decisions will affect employees but did not disclose numbers and said it will support those affected through the transition.
- The studio said it remains "100% committed" to Project Fantasy and will continue development while pursuing alternate funding or self-publishing to finish the online fantasy RPG.
- The move follows a wider Xbox reset under new leadership that is expected to reallocate investments and trigger broader layoffs and studio changes starting in early July, and comes after IO’s recent commercial success with 007 First Light.