IO Interactive Has to Cut Jobs After Xbox Pulls Project Fantasy Funding
Quick Report
IO Interactive announced it is conducting layoffs at its studios after an unnamed external partner (confirmed by Bloomberg to be Microsoft's Xbox) has pulled funding from Project Fantasy, the studio's own IP game currently in development. The layoffs represent IO Interactive's response to what the studio describes as a new reality created by the loss of Xbox's financial and publishing support. Despite the immediate setback, IO Interactive has committed to eventually releasing Project Fantasy, describing it as a world and IP the studio absolutely loves and remains 100% committed to.
The timing is particularly harsh given IO Interactive's strong recent performance with James Bond 007: First Light, which sold 1.5 million units in its first 24 hours. However, Xbox's broader restructuring means support for third-party games is being reconsidered across the board. IO Interactive did not disclose how many employees will be affected by the layoffs or provide specific details about Project Fantasy's development status, only promising that the new financial reality will be temporary and that the game will eventually see the light of day.
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