IO Interactive, the studio behind Hitman and recently released 007 First Light, starts layoffs tied to its next planned franchise, Project Fantasy. In statements posted by the studio, IO says a relationship with an external partner that supports Project Fantasy “has come to and end,” leading to staffing changes. Multiple outlets report that the external partner is Microsoft’s Xbox, which has confirmed it pulled funding for the online fantasy RPG.
While IO acknowledges that layoffs are occurring and describes them as short-term consequences of the partner relationship ending, it also says Project Fantasy is not cancelled. The studio states it is adapting to the change and supports affected employees during the transition. Reports also note that the studio’s timing is especially notable given the recent success of 007 First Light, which has been commercially and critically well received.
According to outlets citing Xbox’s comments, Xbox frames the decision as part of changing investment priorities for games and content. Overall coverage aligns on the key points: layoffs begin, Project Fantasy continues in development, and Xbox is linked to the funding withdrawal.
