007 First Light developer faces layoffs after Xbox pulls support for upcoming fantasy game
… Turns out that third-party was Xbox, and now Xbox is pulling out of its deal with IO Interactive. …
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People also ask
Which parts of IO Interactive's team or operations are most likely to be retained to continue Project Fantasy development after the funding pullout?
IO Interactive says Project Fantasy will continue and that they remain 100% committed to the IP, so core development efforts are being prioritized. The article implies the studio will retain the teams and operations directly responsible for Project Fantasy development to continue the game despite the external partner relationship ending. Answered
007 First Light developer hit with layoffs as Xbox pulls out of Project Fantasy dealCould the change in funding alter Project Fantasy's business model (e.g., live-service elements, monetization, or scope) based on IO Interactive's stated commitment?
IO Interactive says Project Fantasy "will still come out" and that they are "100% committed" to the game and IP, indicating they intend to continue prioritizing its development despite the lost external funding. The primary article does not specify any planned changes to live-service elements, monetization, or scope, so it is not stated that the change in funding will alter the game's business model. Answered
007 First Light developer hit with layoffs as Xbox pulls out of Project Fantasy dealHow might the layoffs affect the projected development timeline or release window for Project Fantasy?
The article says Microsoft pulling funding reduced IO Interactive’s revenue and triggered layoffs, but IO insists Project Fantasy will still be developed and “see the light of day.” It does not provide specific changes to the project’s development timeline or release window, only that the studio must adapt to short-term consequences including staffing decisions. Answered
007 First Light developer hit with layoffs as Xbox pulls out of Project Fantasy deal3 sources covering this — show 2 more
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Microsoft Boss Wants Xbox to Start Pulling Its Weight Financially
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007 First Light | Review Megathread
Game Information Game Title: 007 First Light Platforms: PlayStation 5 (May 27, 2026) Xbox Series X/S (May 27, 2026) PC (May 27, 2026) Nintendo Switch 2 (Late Summer, 2026) Trailer: Developer: IO Interactive Review Aggreg…
007 First Light Review Thread
Game Information Game Title: 007 First Light Platforms: PlayStation 5 (May 27, 2026) Xbox Series X/S (May 27, 2026) PC (May 27, 2026) Nintendo Switch 2 Trailer: https://www.youtube.com/watch?v=jfRZRwu4aEc Developer: IO I…
IO Interactive regains Project Fantasy after Xbox funding ends, but closes one of its studios
… However, amid the changes at Xbox, that funding was pulled , leaving the future of Project Fantasy uncertain, at least until now. …
Xbox Focusing On “Highest Priorities,” Claims It’s Not Cutting Back Overall Spending On Games
Microsoft has confirmed that it pulled out of funding Hitman developer IO Interactive's new fantasy game, and it's because the company is re-focusing its spending on the "highest priorities" for the business. …
Report: Xbox Has No 'Blanket Plans' To End Funding For Third-Party Game Pass Titles
… For now though, it sounds like funding will continue for third-parties, although who knows whether it'll be increased, decreased or remain the same after Xbox's 100-day "Reset" plan is over.
Xbox's Funding Purge Catches IO Interactive's Online Fantasy RPG, yet Kojima's OD Reportedly Escapes the Chopping Block
… But Xbox CEO Asha Sharma is also trimming Xbox's funding for third-party studios: today, they officially pulled out of funding Project Fantasy , IO Interactive 's fantasy online action RPG announced in early 2023 and still largely under wraps, given that the Danish developer was busy making 007 Fir… …
IO Interactive to lay off staff after Xbox exits Project Fantasy
… Bryant Francis , Senior Editor , GameDeveloper.com June 30, 2026 1 Min Read Image via IO Interactive IO Interactive has announced it plans to lay off an unknown number of employees after Microsoft-owned Xbox pulled funding and publishing support for its in-development project codenamed "Project Fan… …
Hideo Kojima's New Horror Game Not at Risk of Xbox Cancellation
… These cuts could extend to third-party deals Microsoft has in place, as it has already pulled funding for Project Fantasy from 007 First Light developer IO Interactive, resulting in the developer having to lay people off of its own. …