IO Interactive Suffers Setback with Fantasy Project Partnership

IO Interactive, the renowned Danish game developer behind the critically acclaimed 007 First Light and Hitman series, has recently announced a series of layoffs following the unexpected termination of a partnership with an external partner on its upcoming fantasy game. Although the studio did not explicitly name the external partner, sources indicate that the game was initially set to be published by Xbox Game Studios.

The layoffs, which have impacted an unspecified number of staff members, are reportedly unrelated to the successful release of 007 First Light, which IO Interactive celebrated in the same post announcing the layoffs. The studio has expressed its commitment to supporting those affected by the decision, emphasizing its dedication to the well-being of its employees.

A Partnership that Fell Through

The fantasy game, previously known as Project Dragon, was listed as an exclusive title for Xbox and PC in a leaked document from the FTC vs. Microsoft trial in 2023. According to the document, Xbox Game Studios was set to publish the game. However, it appears that the partnership between IO Interactive and the external partner has come to an end, leading to the layoffs and a significant setback for the studio’s fantasy project.

The IO Interactive news comes amidst significant restructuring efforts at Xbox. Microsoft is reportedly planning a