Layoffs at IO Interactive as Project Fantasy Ends 'Relationship with External Partner' 1

Update []: A subsequent report from Bloomberg’s (paywalled) Jason Schreier confirms that Xbox was the publisher of Project Fantasy and has now pulled its funding.

In a statement, the Redmond firm said it’s “not reducing our overall investment in games” and is changing “where we're investing and the kinds of projects we're backing”.

As reported previously, significant job losses are expected to be confirmed across Microsoft’s entire gaming unit on 6th July.


Original Story: It’s been a good couple of months for Danish dev IO Interactive following the successful release of 007 First Light, but bad news is never far away in this industry.

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In a statement on social media, the Hitman maker confirmed some “downbeat news” regarding its Project Fantasy game, long rumoured to be published by Microsoft.

It writes:

“A relationship with an external partner on our own IP, Project Fantasy, has come to an end. This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition.”

It’s worth noting that Project Fantasy was never officially announced as an Xbox-published project, but it was always rumoured to be part of the Redmond firm’s roster.

As layoffs loom across multiple Xbox studios, it doesn’t really take a genius to connect the dots here.

The good news is that it sounds like there is a future for Project Fantasy.

The studio says:

“Project Fantasy is a game, a world, and an IP that we absolutely love and remain 100% committed to, now and in the future. This wonderful universe will see the light of day.”

So there’ll be layoffs in the short term while IO Interactive navigates this turbulence, but hopefully they’ll be minimal and the game will survive.

Project Fantasy was described as an “online fantasy RPG” when it was first revealed, and a new direction for the Danish dev.

Its initial press release alluded to a world “built from the core to entertain players and expand for many years to come”.

[source ioi.dk]