Updated June 30, 2026, at 10:40 p.m. BST / 5:40 p.m. ET / 2:40 p.m. PT:
Bloomberg has confirmed that Xbox was indeed funding Project Fantasy. Microsoft “is closely reviewing where we invest in order to focus on our highest priorities,” a spokesperson said.
“We are not reducing our overall investment in games. We plan to invest roughly the same amount in content as we did last year. What’s changing is where we invest and the types of projects we support.”
Original article:
Despite the recent success of 007 First Light, IO Interactive is facing difficulties due to another game. The game in question is Project Fantasy, an online RPG announced in February 2023.
In a statement, the Danish studio indicated that its external partner (which it did not name) working on the title has decided to withdraw. As a result, layoffs are underway at IO. This mysterious partner could be Xbox.
“[…] This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition.”
However, it’s important to note that Project Fantasy has not been canceled. The studio remains committed to bringing this universe to life.
