IO Interactive ends Project Fantasy Xbox deal, faces layoffs

IO Interactive has ended its publishing partnership with Xbox for Project Fantasy, leading to layoffs as the studio prepares to self- publish the RPG.

IO Interactive has ended its publishing partnership with Xbox for Project Fantasy, an in-development online fantasy RPG. This shift forces the studio to secure new funding or self-publish the title, as the immediate consequence includes staffing decisions and layoffs. Gamers following the project should note that the studio remains committed to releasing the game in the future despite the loss of publisher support.

Studio pivots to self-publishing after Xbox partnership termination

The termination of the deal with Xbox is linked to reported internal restructuring and layoffs at the Microsoft division. IO Interactive stated that a relationship with this external partner on its own intellectual property has come to an end. The company described the situation as a new reality that requires adaptation to short-term consequences.

IO Interactive confirmed that it will continue development of Project Fantasy independently. The studio must now navigate the financial and operational challenges of self-publishing or finding a new publisher. This change marks a significant pivot in the development strategy for the online fantasy RPG that was previously supported by Xbox.

The studio announced immediate staffing decisions and layoffs as a direct result of the lost publisher support. IO Interactive shared that for a good while, it had been all positive news, but today they must share more downbeat news. The company emphasized that despite these challenges, the project remains a priority for the future.