IO Interactive Confirms Layoffs Following End of Project Fantasy Partnership

IO Interactive has revealed that, due to the end of a Project Fantasy partnership with an external partner, there will be layoffs at the company.

The developers of 007 First Light had been experiencing quite a good month, with the new Bond-themed adventure captivating audiences across the globe. However, all isn’t good even with a successful release, as one of their other projects has been impacted, which was in “a very healthy space” until recently.

IO Interactive’s Undisclosed External Partner on Project Fantasy Could be XBOX

A new post on the official IO Interactive X account (formerly known as Twitter) confirms that layoffs are imminent. The post reveals that their partnership with an unnamed “external partner” on Project Fantasy has come to an end. This has resulted in “short-term consequences” for the developers, including “staffing decisions.” The post also emphasizes that IO Interactive is “100% committed” to Project Fantasy, stating that “this wonderful universe will see the light of day.” Check out the full statement below:

Dear gaming community,

For a good while, it has been all positive news from IO Interactive. 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.

Players have already started speculating about who the unnamed partner is, and many fingers are being pointed at XBOX. One player even shared a leaked FTC document from years ago that indicated Xbox might be publishing IO Interactive’s fantasy title. However, the developers have not officially confirmed Xbox’s involvement. When CEO Hakan Abrak was asked whether Xbox was part of the project, he neither confirmed nor denied it.

What are your thoughts on IO Interactive facing layoffs due to a Project Fantasy partnership ending? Leave your thoughts down in the comments, and join the official Insider Gaming Discord server.

For more information from Insider Gaming, read about Arkane being at risk of closure with Blade possibly being canceled. Don’t forget to sign up for our weekly newsletter.