IO Interactive Loses Publisher for Project Fantasy, But Won't Give Up Development

According to media reports, the project was being developed in collaboration with Xbox.

IO Interactive, known for the Hitman series and the recently released 007 First Light, announced the termination of its partnership with an external partner who was involved in the development of the ambitious fantasy role-playing game Project Fantasy. Despite this, the team emphasized that they do not intend to close the project and will continue its creation.

In an official statement, the developers noted that after a series of positive news, they have to share less pleasant information. According to IO Interactive, the collaboration with an external partner on their own intellectual property Project Fantasy has ended, which will lead to changes within the company, including the reduction of some employees.

Although IO Interactive did not disclose the partner's name, internal documents during the FTC's lawsuit against Microsoft in 2023 indicated that Xbox was to be the publisher of the project. Earlier, in 2021, Windows Central reported that Microsoft was funding the development of a new "dragon" intellectual property that was to be released exclusively on Xbox. Later, IO itself confirmed that it was working on an online fantasy role-playing game with a focus on long-term development.

According to Bloomberg, Xbox was indeed the publisher of Project Fantasy. After the termination of the partnership, IO Interactive will continue to develop the game, but now the studio will either have to find a new investor or self-finance and publish the project.

An Xbox representative commented on the situation, stating that the company is "re-evaluating investment directions to focus on its main priorities." The announcement came amid reports of massive layoffs in Microsoft's gaming division.