IO Interactive Remains Fully Committed to New Fantasy Game Following Layoffs and Project Setback

IO Interactive is experiencing layoffs today following the withdrawal of an “external partner” from the development of their new IP, Project Fantasy. There have been longstanding speculations about Microsoft being involved as the publisher for this project, a notion supported by a leak from the FTC a few years back, which two sources close to the situation have confirmed.

Here’s the message from IO Interactive:

For quite some time, we’ve been sharing positive updates from IO Interactive. We are truly grateful for the warm reception to our latest venture featuring a young, untested Bond. This bold new narrative and fresh take on one of entertainment’s most iconic characters has been embraced by fans worldwide.

However, we must now convey some unfortunate news. Our partnership with an external collaborator on Project Fantasy has concluded. As a result, we need to adjust to this new reality and its immediate impacts, which include difficult staffing decisions currently underway. We are fully dedicated to supporting those affected during this challenging transition.

Project Fantasy is a game, a world, and an IP that we cherish and are completely committed to, both now and in the future. This incredible universe will definitely come to life.

This announcement coincides with Microsoft’s anticipated significant cuts within its gaming division, which may involve the closure or restructuring of some first-party studios.