Danish game developer IO Interactive, known for the Hitman series and the recent 007 First Light, has initiated layoffs affecting staff working on its upcoming fantasy role-playing game, codenamed Project Fantasy. The studio confirmed the staffing decisions are a direct result of a severed relationship with an external partner who had been providing funding for the ambitious project. IO Interactive stated in a release that these are short-term consequences necessitating adaptation to a new reality. "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," the studio said. Despite this setback, IO Interactive remains committed to the fantasy RPG, asserting that the game's universe will still be realized. "This wonderful universe will see the light of day," the company concluded.
While the identity of the external partner had been a subject of speculation, Xbox has now confirmed it was the entity providing financial backing for Project Fantasy. In a statement to Bloomberg, an Xbox representative explained the decision to withdraw funding as part of a broader shift in investment strategy. "We expect to invest about the same in content as we did last year. What's changing is where we're investing and the kinds of projects we're backing," the representative said. This development comes on the heels of significant success for IO Interactive's latest title, 007 First Light, which has reportedly sold over 3 million copies within its first two weeks of release, marking a commercial and critical triumph for the studio.