Project Fantasy
News, coverage and analysis tracking Project Fantasy across the outlets.- After Xbox Pulls Funding, Hitman Dev Is Closing A Studio And Laying People OffIO Interactive is closing its Istanbul studio and laying off staff after Xbox withdrew funding for its upcoming RPG, Project Fantasy. The studio has regained full ownership of the project and its IP, but these cuts were deemed necessary for the company's long-term future and to focus on its core internal titles.
'These are hard, but necessary decisions' — Xbox pulled funding for Io Interactive's 'Project Fantasy' but the developer will continue working on the game independentlyIO Interactive has regained full ownership of its online fantasy RPG, Project Fantasy, after Xbox withdrew its funding. The developer will continue to fund and develop the game independently, but will close its Istanbul studio and lay off an unconfirmed number of employees. This decision comes amidst broader restructuring and layoffs at Microsoft.
IO Interactive to shutter Istanbul studio following end of Project Fantasy deal with XboxIO Interactive will close its Istanbul studio following the withdrawal of Xbox's funding for its online fantasy RPG, Project Fantasy. The company cited the decision as necessary to maintain its independence as a AAA developer and publisher. IO Interactive has regained full ownership of Project Fantasy and plans to fund and develop it independently.
IO Interactive closing Istanbul studio after regaining control of Project FantasyIO 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.
Fantasy meets reality: Why turmoil at Xbox is impacting IO Interactive and Project FantasyIO 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.- IO Interactive’s online fantasy RPG Project Fantasy sees Xbox pull funding and begins studio layoffsIO 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.
007 developer suffers layoffs and Blade faces cancellation as Xbox cuts fundingMicrosoft 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 RPGXbox 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.
Xbox ends deal to fund and publish IO Interactive's Project Fantasy; redundancies expectedXbox has ended its deal to fund and publish IO Interactive's online fantasy RPG, Project Fantasy. This decision, attributed to Xbox reshaping its investment priorities, is expected to lead to redundancies at IO Interactive. Despite the setback, IO Interactive remains committed to releasing the game.
IO Interactive Layoffs: Xbox Pulls Project Fantasy Funding — Too Much Gaming | Video Games Reviews, News, & GuidesIO Interactive is continuing work on Project Fantasy despite Xbox pulling its funding, and will now seek alternative funding or self-publish. This is part of a larger "reset" at Xbox under new CEO Asha Sharma, with reports indicating several studios like Ninja Theory, Compulsion Games, Undead Labs, Arkane, and Double Fine are in talks to avoid closure. Xbox is reassessing its investment priorities to better fund its existing franchises and ensure a reliable pipeline of exclusive content.
Evening Reading - July 30, 2026This article rounds up various gaming news items from July 30, 2026. Highlights include a live-action Persona adaptation for Netflix, a fall 2026 release window for Cyberpunk Edgerunners 2, and SECI Interactive warning of staffing decisions after Microsoft pulled out of publishing Project Fantasy. It also touches on esports events like EVO 2026 for 2XKO and mentions updates for games like Battlefield 6 and Turok: Origin.- Microsoft Won't Publish IOI's Project FantasyIO Interactive announced the end of a partnership with an external party regarding their fantasy-themed online RPG, Project Fantasy. Microsoft will not be publishing the game, which was initially revealed in 2023.
IO Interactive’s Project Fantasy Faces Layoffs After Xbox Ends PartnershipIO Interactive has announced layoffs due to Project Fantasy and the end of a partnership with an external party, confirmed to be Xbox. Despite the staffing changes and the partnership's conclusion, the company remains committed to the online fantasy role-playing game. This situation mirrors other projects that faced upheaval after Xbox ended partnerships, though Project Fantasy is not cancelled.
IO Interactive warns of 'staffing decisions' as Xbox pulls out of deal to publish Project FantasyIO Interactive has announced that Xbox has withdrawn its partnership to publish and fund their online fantasy RPG, Project Fantasy. This decision may lead to short-term consequences for the developer, including potential staffing changes. The game was previously stated to be in a healthy development state as recently as May 2026.
Xbox pulls funding for 007 First Light dev's new fantasy RPG, prompting layoffs as Microsoft insists "we're not reducing our overall investment in games"Xbox has withdrawn funding for IO Interactive's upcoming online fantasy RPG, Project Fantasy, leading to layoffs at the developer. Microsoft stated that while overall investment in games remains the same, the company is shifting its investment focus. IO Interactive confirmed its commitment to completing the game despite the funding change.
Microsoft reportedly add Arkane and their Blade game to the potential shuttering pileMicrosoft is reportedly considering shutting down Arkane Studios and canceling the Blade game, with potential layoffs affecting up to 1000 employees across Xbox. Other studios like Ninja Theory and Undead Labs are also rumored to be on the chopping block. The company is also reportedly divesting its partnership with IO Interactive on Project Fantasy.
Microsoft pulls out of IO Interactive’s Project FantasyMicrosoft has ended its partnership with IO Interactive on the upcoming fantasy RPG Project Fantasy, which was intended to be an Xbox exclusive. IO Interactive is committed to continuing the project despite the setback and is implementing staffing changes. Microsoft stated this decision reflects a shift in investment focus rather than a reduction in overall gaming investment.
Xbox Focusing On “Highest Priorities,” Claims It’s Not Cutting Back Overall Spending On GamesMicrosoft's Xbox division is re-focusing its spending on 'highest priorities,' leading to the cancellation of funding for IO Interactive's Project Fantasy. A spokesperson stated that overall investment in games remains the same as last year, but the types of projects being backed are changing. This shift is part of a broader business 'reset' at Xbox, which may include layoffs and studio changes.
Ahead of next week's expected Xbox bloodbath, IO Interactive loses funding for its online fantasy RPGIO Interactive has lost external funding for its online fantasy RPG, Project Fantasy, leading to anticipated layoffs. Microsoft confirmed it was the partner that pulled funding as it re-evaluates its investments. This news comes shortly after the successful launch of 007 First Light, but casts a shadow over the future of Project Fantasy and potentially other studios working with Microsoft.
Io Interactive Laying Off Staff After Partner Withdraws from Project FantasyIO Interactive has announced layoffs following the withdrawal of funding for their new intellectual property, Project Fantasy, by an external partner, rumored to be Microsoft. Despite the setback, the company remains committed to the project's completion. This decision comes amid broader shifts within Xbox's business strategy under new leadership.