IO Interactive has carried out a round of layoffs after Microsoft withdrew its funding. The decision affects the fantasy RPG previously known as Project Fantasy, which the Danish developer had been working on in collaboration with Xbox.

Some joys are fleeting, and IO Interactive’s has ended just a month after the release of 007 First Light. The game, set in the James Bond universe, has sold over three million units since its launch at the end of May. Despite this success, its creators have just announced a round of layoffs triggered by changes at Xbox. Microsoft’s gaming division, currently undergoing restructuring, has decided to withdraw funding from the developer, with whom it was collaborating on a game previously known as Project Fantasy.

“Our relationship with one of our external partners for the creation of our own IP, Project Fantasy, has come to an end. This means we have to adapt to the new reality and its short-term consequences, including decisions regarding staffing,” IO Interactive said on social media. The developer avoided directly naming Xbox. However, Microsoft has acknowledged the situation. According to a company spokesperson speaking to Bloomberg, they made the decision because they are “reviewing their investments to focus on top priorities.”

The news comes amid changes for the Xbox brand. Several journalists had already confirmed in recent days that the company had terminated contracts with several partners and halted agreements with various companies with whom it had begun negotiations to bring their games to Game Pass. Furthermore, Microsoft itself is expected to carry out its own round of layoffs next week, eliminating hundreds, or thousands, of jobs and closing or selling several studios. Among those that could permanently shut down is Arkane, creators of Dishonored, Deathloop, and the upcoming Marvel’s Blade.

The company maintains that the plan is not to reduce investment in video games, but rather to change where it invests and what types of projects it supports. However, the decision to abandon IO Interactive seems strange even in this context. The Danish company has stumbled as a publisher, but has proven to be an absolute guarantee in terms of development. After reviving the Hitman saga, it ventured into 007 First Light, which received very positive reviews and is proving to be a sales success.

IO Interactive Does Not Cancel Project Fantasy

In the same announcement regarding the layoffs, IO Interactive also confirmed that development of Project Fantasy is continuing. “It’s a game, a world, and an IP that we love and remain 100% committed to. This wonderful universe will see the light of day,” the studio explained via social media. In any case, a slowdown in the project’s progress or a reduction in its scale is to be expected. The truth is, from what little we knew until now, it seemed to be the largest project the studio had ever undertaken.

So far, the little we know about Project Fantasy is that it will be an “extremely important” online fantasy RPG for IO Interactive in creative terms, one that the company planned to keep alive for years.

Source: 3DJuegos