IO Interactive has said it’s ended its relationship with the external partner for the in-development game Project Fantasy.
The online fantasy RPG has been in development with an as-yet-unannounced partner, but internal documents shared as part of an FTC vs. Microsoft trial in 2023 suggested the partner was Xbox, with the game set to be an Xbox exclusive.
Now, as Xbox prepares for reported widespread layoffs, Hitman and 007 First Light developer IO has announced that it has cut ties with its unannounced partner and will have to make “staffing decisions”.
Update
A Bloomberg report confirms Xbox as Project Fantasy’s publisher.
IO Interactive will continue to develop the game, it claims, but it will have to find other funding or publish the game itself.
Xbox is “taking a fresh look at where we invest so we’re focusing on our highest priorities,” a spokesperson said in a statement.
“For a good while, it has been all positive news from IO Interactive,” a statement from the company reads. “We remain humbled and honored by the response to our latest outing with a young, unproven Bond. A bold new story and a take on one of the most famous characters in entertainment, which the world has embraced with love.
“However, today we have to share some more downbeat news. A relationship with an external partner on our own IP, Project Fantasy, has come to an end.
“This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition.
“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.”
In April 2021, Windows Central first claimed that IO had teamed up with Microsoft to work on a new “dragon-themed IP” which the platform holder was expected to publish as a first-party Xbox exclusive. Then in 2023, IO itself confirmed that it was working on an online fantasy RPG.
“We are building a new world, a new IP – an online fantasy RPG,” the company said. “A world and a game built from the core to entertain players and expand for many years to come.”
