IO Interactive cuts staff after Project Fantasy partner exits
The Hitman studio says its online fantasy RPG remains in development after losing an outside partner reportedly tied to Microsoft.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
IO Interactive is laying off employees after a partnership tied to Project Fantasy, its planned online fantasy RPG, ended, the studio said in a statement on X. The cuts affect a new franchise the Hitman and 007 First Light developer says it still intends to release.
IO Interactive said the end of its relationship with an “external partner” forced it to adjust plans, including staffing decisions. The company did not say how many workers are affected.
Project Fantasy is IO Interactive’s own intellectual property, according to the studio. IO has described the game on its website as an online fantasy RPG, and said in its statement that it remains “100% committed” to the project.
Kotaku reported that Microsoft had been set to publish Project Fantasy. The Verge reported separately that Microsoft is preparing significant cuts as part of a wider reset of its Xbox business.
IO Interactive said it would support employees affected by the layoffs. The studio said Project Fantasy remains a game, world and franchise it wants to bring to players, despite the partner split.
The company announced the job cuts shortly after a strong launch for 007 First Light. The Verge reported that the Bond game was released in May, and IGN reported that it sold 3 million copies soon after launch.
IO Interactive’s statement contrasted the layoffs with the reception to its Bond game. The studio said players had embraced its take on a younger James Bond, according to its message on X.
The future of IO Interactive’s role in Bond games beyond 007 First Light has not been confirmed. In an interview with The Verge, Amazon’s games boss did not say whether IO would develop a possible sequel, saying Amazon would decide who makes the next Bond game after the current release settles.
The partner exit adds IO Interactive to a longer list of game companies dealing with cuts, cancellations or publishing changes. In this case, the studio is saying publicly that Project Fantasy will continue, while giving no timeline for when it will be shown again or released.
The Verge said IO Interactive and Xbox did not immediately respond to requests for comment. IO Interactive’s public statement remains the company’s main explanation for the layoffs and the status of Project Fantasy.
This story draws on original reporting from The Verge.