Project Fantasy
News, coverage and analysis tracking Project Fantasy across the outlets.
Latest coverage
IO Interactive Layoffs: Xbox Pulls Project Fantasy Funding — Too Much Gaming | Video Games Reviews, News, & Guides
IO 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, 2026
This 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 Fantasy
IO 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 Partnership
IO 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 Fantasy
IO Interactive has announced that Xbox has withdrawn its partnership to publish and fund their online fantasy RPG, Project Fantasy.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Xbox has withdrawn funding for IO Interactive's upcoming online fantasy RPG, Project Fantasy, leading to layoffs at the developer.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 pile
Microsoft 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 Fantasy
Microsoft 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 Games
Microsoft'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 RPG
IO 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 Fantasy
IO 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.
IO Interactive look set for layoffs as their external partner for Project Fantasy pulls out
IO Interactive is facing imminent layoffs due to the termination of its relationship with an external partner for its unannounced game, Project Fantasy. While the studio remains committed to the game's development, the split necessitates staffing changes. Project Fantasy was previously revealed in documents to be intended for publishing by Xbox Game Studios.
After 007 First Light, IO Interactive's next game probably won't be another James Bond or a Hitman, but rather something else entirely
IO Interactive's next major project, codenamed Project Fantasy, will be an online fantasy RPG and a new intellectual property, rather than a James Bond or Hitman title. While the studio will continue to support 007 First Light with new content, a dedicated team is actively developing Project Fantasy, which is described as a shared world experience designed for long-term expansion.
IO Interactive says Project Fantasy is 'in a very healthy place'
IO Interactive has provided an update on its upcoming fantasy RPG, Project Fantasy, stating that development is progressing well. The company first announced its work on the title in 2023.
IO Interactive’s Project Fantasy is in A “Healthy Place,” Per Its CEO
IO Interactive CEO Hakan Abrak confirmed that Project Fantasy, an RPG based on the Fighting Fantasy books, is in a healthy and financed state. Despite rumors of funding issues, Abrak stated the project is far along in development and has a new backer, with potential for a multiplatform release. The studio's next project, 007 First Light, is set to release on May 27th for Xbox Series X/S, PlayStation 5, and PC.