IO Interactive facing layoffs as it cuts ties with Project Fantasy partner, believed to be Xbox

IO Interactive has confirmed layoffs following the termination of its relationship with an external partner for Project Fantasy. While the developer recently saw success with 007 First Light, this project, long rumored to be published by Microsoft, has faced setbacks. Internal documents from 2023 previously identified Project Fantasy as an Xbox exclusive. The Hitman maker shared this downbeat news via social media, marking a sudden shift in momentum for the Danish studio's current development cycle.