IO Interactive announced that it is joining the long, long list of companies laying off staff. The company revealed the circumstances behind the layoffs on social media, noting that the root cause is a concluded partnership between itself and Xbox. The two entities were working together on an in-development title called “Project Fantasy,” which IO Interactive says is still in development.
The announcement, made on X, does not say in so many words that IO Interactive employees are losing their jobs, instead saying, “A relationship with an external partner on our own IP, Project Fantasy, has come to an end. 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.”
As for who this external partner might be, IO Interactive doesn’t name them. But Xbox was already the likely suspect, having announced its collaboration with IOI on the then-codenamed “Project Dragon” years ago. Xbox confirmed to Bloomberg that it was the departing partner in question, with a spokesperson saying the company was reevaluating its investments. Presumably this is part of the company-wide reset happening under Asha Sharma and Matt Booty’s leadership, which is also likely going to result in layoffs.
The social media announcement acknowledges that most of the news from IO Interactive recently has been positive, especially regarding its recently released game 007 First Light. The game has sold almost 3 million units within the first week of its launch, and was the best-selling game for May in the United States.