IO Interactive has begun layoffs. Microsoft has withdrawn funding for their new game
The number of people leaving the studio is unknown.
Project Fantasy
IO Interactive shared about the issues on social media. As the studio explained, it lost a partner meant to assist with a game under the codename Project Fantasy — a fantasy online RPG based on a new IP. However, they do not plan to cancel the project. IO Interactive still believes that one day their creation will reach release.
While IO Interactive did not name the partner, Bloomberg journalist Jason Schreier found out that it was Microsoft. According to him, the corporation had previously agreed to fund and publish Project Fantasy but changed its mind due to altered investment plans.
In a comment to Bloomberg, Microsoft representatives stated that XBOX has revised its approach to selecting partner projects. Meanwhile, the division decided not to reduce the total amount of investment and expects to invest in games this year approximately the same as the previous year.