IO Interactive Lays Off Staff Amid Project Fantasy Publisher Change

IO Interactive, the developer of the *Hitman* series and *007 First Light*, has announced staff layoffs following the termination of a partnership with an unnamed external collaborator on its upcoming project, *Project Fantasy*. The studio described the game as an “online fantasy RPG” and confirmed the partnership “has come to an end,” though details about the external entity remain unconfirmed. Kotaku reported that Microsoft, which is undergoing a strategic overhaul of its Xbox division involving widespread job cuts, had been slated to publish the title. The number of affected employees at IO Interactive has not been disclosed.

The studio emphasized its commitment to supporting impacted staff during the transition, stating, “We are fully committed to supporting those affected through this challenging transition.” The move comes amid broader industry turbulence, with Microsoft recently announcing significant restructuring efforts to refocus its gaming strategy. While IO Interactive did not clarify the financial or developmental implications of the partnership’s dissolution, the decision underscores the volatility of high-stakes collaborations in the competitive gaming sector. Further details about *Project Fantasy* or the studio’s future plans remain undisclosed.

For more information, read the full story at The Verge.