IO Interactive, the studio behind Hitman and 007 First Light, starts layoffs as part of staffing changes tied to Project Fantasy, an as-yet unreleased online fantasy RPG in development. In statements shared on social media, the studio says its “relationship with an external partner… has come to an end,” describing the resulting cuts as short-term consequences. Multiple outlets report that the layoffs are currently in progress or imminent, with IO stating it is adapting to the change and remains committed to supporting affected employees through the transition.
The external partner is not formally named in IO’s public update, but reporting cited by outlets identifies Microsoft as having been involved. GameSpot additionally reports that Xbox confirmed the end of funding arrangements, explaining that it plans to invest similarly in content overall but shift where it invests and what kinds of projects it supports.
Despite the setbacks, IO says Project Fantasy is not cancelled, using language indicating it will eventually reach launch. The studio’s recent releases include 007 First Light, which outlets describe as performing strongly shortly after launch.
