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Hitman and 007 First Light dev IO Interactive regains "full ownership" of its mysterious online RPG project after Xbox reportedly pulled funding
IO Interactive has regained full ownership of its online RPG Project Fantasy after Xbox reportedly pulled its funding. The developer will now independently fund and continue development of the project, while also making staffing changes and closing its Istanbul studio to focus on its core internal titles.
IO Interactive closing Istanbul studio after regaining control of Project Fantasy
IO Interactive is closing its Istanbul studio following Xbox's withdrawal of financing for the online RPG Project Fantasy. Although IO Interactive has regained full ownership of the project, the studio must now find a new balance and focus on its main internal titles. The closure is described as a necessary step to ensure the long-term future of the independent AAA developer and publisher.
10 Best Games of 2026 So Far
This article ranks the top 10 video games released in the first half of 2026. Titles like Resident Evil Requiem, Crimson Desert, and Forza Horizon 6 are highlighted for their innovative gameplay, compelling stories, and impressive visuals. The list also features LEGO Batman: Legacy of the Dark Knight, Mouse: P.I. For Hire, Pragmata, Saros, Nioh 3, 007 First Light, and Pokémon Pokopia.
Xbox Layoffs 2026: What Microsoft's Reset Means for Average Gamers
Microsoft's Xbox division has undergone a massive restructuring, cutting approximately 3,200 jobs in fiscal year 2027 and shuttering or spinning off five studios, including Ninja Theory and Arkane Lyon. This move comes despite Microsoft's overall profitability, with Xbox reportedly struggling with low profit margins and a failed attempt to achieve a 30% accountability margin. The article analyzes the business decisions, including Game Pass accounting and price hikes, that led to these layoffs and discusses the implications for gamers, including potential changes to hardware strategy and game exclusivity.
UK software sales chart for the week ending July 4, 2026 – Rhythm Heaven Groove debuts in the top 5, Star Fox still going strong
The latest UK software sales chart for the week ending July 4, 2026, shows Rhythm Heaven Groove debuting at number 5 and Star Fox holding strong at number 4. EA SPORTS FC 26 leads the chart, with a variety of other titles from Nintendo, Capcom, and Electronic Arts filling out the top 20.
MMO Week in Review: EverQuest rising
This week's MMO news roundup highlights the resurgence of the EverQuest franchise with EverQuest Legends entering paid beta and expansions teased for EverQuest and EverQuest II. Other major stories include the implosion of DreamWorld, potential layoffs at Blizzard and Bethesda, and Sony's shutdown of PS3 and PS Vita storefronts. The article also covers updates and news from various other MMOs like Elder Scrolls Online, Conan Exiles, and Valheim.
Shack Chat: What's your Game of the Mid-Year?
Shacknews staff members share their personal favorite games released in the first half of 2026. Titles like Pragmata, Tomodachi Life: Living the Dream, Star Fox, and Marathon are highlighted for their engaging gameplay, compelling stories, and unique experiences.
PlayStation goes all-digital, lessons learned for Square Enix, and what happens when fantasy projects collide with the…
Sony PlayStation will discontinue physical game disc production for new games starting January 2028, coinciding with the closure of the PlayStation Store on PS3 and Vita. Meanwhile, Cyberpunk 2077 has surpassed 40 million players, and CD Projekt Red is consolidating its brand. IO Interactive's fantasy RPG Project Fantasy faces uncertainty as Xbox funding has been pulled.
Something for the Weekend – 04/07/26
This week's gaming news includes Sony phasing out physical disc production by 2028 and closing PlayStation Store access for PS3 and Vita again. Xbox is reportedly testing a disc-to-digital feature. Several games received release date changes or confirmations, including Onimusha: Warlords and The Elder Scrolls IV: Oblivion Remastered. Reviews were published for Rhythm Paradise Groove and WILL: Follow The Light, alongside previews for Fatekeeper, Witchspire, Dziady, Doom: The Dark Ages, and Splatoon Raiders.
Betawatch: EverQuest Legends begins paid beta, Project Fantasy goes poof
EverQuest Legends has launched its paid beta, offering a familiar EverQuest experience with quality-of-life improvements. Meanwhile, IO Interactive's Project Fantasy faces funding issues after Xbox pulled support, leading to layoffs, though the studio insists development continues. Other games like Dreamworld and Cinder City are also mentioned in the context of ongoing testing and development.
Rare added to the list of Xbox studios under threat
Rumors suggest that Microsoft is planning significant layoffs across several Xbox studios, including Rare, Bethesda, and Arkane, with some studios potentially facing closure or sale. This follows recent layoffs at Bungie and Microsoft pulling out of a partnership with IO Interactive. The reported motivation behind these potential cuts is a focus on profitability by new Microsoft management.
Xbox is closing down studios to help fund more Halo claim insiders
Xbox is reportedly planning significant layoffs and studio closures as part of a strategy to reallocate resources towards key franchises like Halo, The Elder Scrolls, and Fallout. Insiders suggest this move aims to revitalize struggling IPs and address issues with post-launch support, particularly for Halo Infinite. Several studios, including Ninja Theory and Double Fine, are rumored to be at risk.
Four days left to challenge Wiz Khalifa in the new HITMAN World of Assassination Elusive Target mission
IO Interactive has provided an update on the Elusive Target mission "The Wizard" in HITMAN World of Assassination, featuring Wiz Khalifa. The mission, available for free until July 5, 2026, on multiple platforms including PlayStation 5, Xbox Series X, and PC, has seen over one million active players. A new DLC pack, "The Wizard Pack," is also available for purchase.
Fantasy meets reality: Why turmoil at Xbox is impacting IO Interactive and Project Fantasy
IO Interactive's online fantasy RPG, Project Fantasy, is in turmoil after Xbox Game Studios Publishing reportedly pulled its funding. Despite this setback, IO Interactive remains committed to the project and is restructuring to continue development. This situation highlights the shifting priorities within Xbox under new CEO Asha Sharma, impacting independent studios reliant on external partnerships.
Hideo Kojima's experimental Xbox exclusive, OD, is reportedly safe from Microsoft cuts
Hideo Kojima's upcoming experimental Xbox exclusive, OD, is reportedly safe from recent cancellations and funding cuts within the Xbox division. Despite Microsoft reevaluating its gaming priorities, sources indicate that OD will continue to be published by Xbox. The game, described as a new form of media blending film and gaming, is being developed by Kojima Productions and features involvement from director Jordan Peele.
This Week In Games Was Bad, But Next Week May Be Worse
The gaming industry experienced a particularly bleak week with multiple significant layoffs, studio closures, and price increases. Microsoft's Xbox division saw widespread job cuts, while Sony announced plans to end physical disc production for PlayStation games by 2028. These events, coupled with delays and the ongoing impact of AI discussions, paint a grim picture for the industry's immediate future.
IO Interactive’s online fantasy RPG Project Fantasy sees Xbox pull funding and begins studio layoffs
IO Interactive's online fantasy RPG, Project Fantasy, is facing significant challenges as Xbox has withdrawn its funding. This decision has led to studio layoffs, though IO Interactive remains committed to completing the game. Xbox stated that while overall investment in games remains, their investment strategy is shifting.
"I get very excited about trying to invent something new" – Assassin's Creed composer Jesper Kyd reflects on his three-decade career
Composer Jesper Kyd reflects on his three-decade career, highlighting his work on franchises like Assassin's Creed and Hitman. He expresses excitement for creating new themes and innovating in game music, while also acknowledging the practical need for sequels and tested concepts in the industry.
007 developer suffers layoffs and Blade faces cancellation as Xbox cuts funding
Microsoft is reportedly considering closing at least five studios, including Arkane Studios, which is working on Marvel's Blade, and has pulled funding for IO Interactive's Project Fantasy. These cuts follow Xbox boss Asha Sharma's promise of a company 'reset' and are expected to lead to significant layoffs. While Arkane's Blade is at risk of cancellation due to budget overruns, IO Interactive remains committed to Project Fantasy despite the funding setback.
007 First Light studio IOI facing layoffs as Xbox pulls funding for Project Fantasy RPG
Xbox has withdrawn funding and publishing support for IO Interactive's online fantasy RPG, Project Fantasy. This decision will lead to layoffs at the Hitman and 007 First Light developer. Xbox stated they are re-evaluating investments to focus on their highest priorities, though they maintain their overall investment in games remains the same.
