IO Interactive announces layoffs as Xbox pulls funding for Project Fantasy

Today, IO Interactive announced layoffs following an end of a partnership with an external partner involved with its 2023-announced Project Fantasy. It has been confirmed to Bloomberg that Xbox Game Studios were the publisher of the project, following leaks from the FTC v. Microsoft court proceedings.

“We’re not reducing our overall investment in games,” Microsoft said to Bloomberg. “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.”

On July 6, Xbox is reportedly planning massive layoffs with at least 1,000 jobs being impacted. In related news, multiple Xbox-owned studios such as Double Fine Productions, Arkane Studios, Compulsion Games, Undead Labs, and Ninja Theory are facing closures. Most of these studios are looking for potential buyers in hopes to keep the studio and projects alive.

IO Interactive has made it clear that Project Fantasy is still in development and remain committed to it. “Project Fantasy is a game, a world, and an IP that we absolutely love and remain 100% committed to, now and in the future. This wonderful universe will see the light of day.”

What do you think of the recent Xbox news?

Source: Gematsu