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IO Interactive Announces Layoffs After Publisher Pulls the Plug on Fantasy Game

by 1 July 2026023
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007 First Gentle and Hitman developer IO Interactive has introduced layoffs after an surprising setback revolving round its upcoming fantasy recreation, which was reportedly set to be revealed by Xbox.

The Danish developer took to social media to verify {that a} relationship with an “exterior accomplice” that was working on the studio’s upcoming fantasy recreation had ended. Consequently, IO Interactive is shedding an unconfirmed variety of employees, nevertheless it insisted it remained dedicated to supporting those that are impacted.

It’s believed that these layoffs are unrelated to the profitable launch of 007 First Gentle, which IOI celebrated in the identical submit.

Here is IO’s assertion in full:

Expensive gaming neighborhood,

For a great whereas, it has been all optimistic information from IO Interactive. We stay humbled and honored by the response to our newest outing with a younger, unproven Bond. A daring new story and a take on considered one of the most well-known characters in leisure, which the world has embraced with love.

Nonetheless, at this time we’ve to share some extra downbeat information. A relationship with an exterior accomplice on our personal IP, Undertaking Fantasy, has come to an finish. This implies we’ve to adapt to this new actuality and its short-term penalties, together with staffing choices, which is what is occurring as we write this replace, and we’re absolutely dedicated to supporting these affected via this difficult transition.

Undertaking Fantasy is a recreation, a world, and an IP that we completely love and stay 100% dedicated to, now and in the future. This glorious universe will see the mild of day.

Though IO Interactive didn’t explicitly title the exterior accomplice, Undertaking Fantasy was reportedly set to be revealed by Xbox. In keeping with a leaked doc from the FTC vs. Microsoft trial in 2023, Microsoft had the recreation (then often known as Undertaking Dragon) listed as an unique for Xbox and PC. It additionally said that the title can be revealed by Xbox Game Studios.

The IOI information additionally comes forward what are anticipated to be vital restructuring at Xbox. Microsoft is planning a “reset” for the Xbox model, which is able to reportedly embody studio closures, recreation cancellations, and mass layoffs. Unionized Xbox workers are trying to push again towards the reset and cement protections for employees, nevertheless it stays to be seen what is going to occur.

Cade Onder is a freelancer for IGN’s information workforce. He covers all issues leisure, together with gaming, movie, and extra. You’ll find him on Twitter @Cade_Onder.

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