IO Interactive, the studio behind the Hitman series and the recent James Bond game 007 First Light, has confirmed that it is undergoing staffing adjustments after Xbox withdrew its support for the studio's new online fantasy role-playing game, Project Fantasy. The developer announced that a partnership with an external entity for Project Fantasy has concluded, leading to immediate consequences for its personnel.
Despite the setback, IO Interactive stated that its commitment to Project Fantasy remains absolute. "This wonderful universe will see the light of day," the studio assured.
Bloomberg reported that the external partner in question was Microsoft's Xbox division. An Xbox spokesperson indicated that the company is re-evaluating its investment strategy to prioritize its highest-priority initiatives. While the overall investment in games is expected to remain consistent with the previous year, the focus is shifting towards different types of projects and partnerships. This strategic shift comes as part of a broader reorganization within Xbox under its new leadership.
Project Fantasy, a new intellectual property for IO Interactive, has been in development since around 2021 and was formally announced in 2023. It was previously noted to be one of the studio's largest development projects. Christian Elverdam, a co-owner of IO Interactive, is leading the project, which chief development officer Véronique Lallier described as an exciting new IP that leverages advanced technology.
This development marks a significant turn for IO Interactive, especially following the critical and commercial success of 007 First Light. The game received a four-star review, with praise for its narrative, and achieved nearly three million sales in its first week. The studio is now set to seek new publishing arrangements for Project Fantasy from a position of demonstrated strength.
Our thoughts are with the employees affected by these layoffs. Xbox's restructuring efforts, which are reportedly set to intensify around July 6th, may also impact other studios, with Arkane Games also mentioned as potentially at risk.