IO Interactive’s Project Fantasy is in trouble as relationships “with an external partner” have “come to an end”

While IO Interactive are best known for their work on the HITMAN (and now 007) franchise, the team had been working for quite some years on an entirely new IP. Known simply as ‘Project Fantasy’ IOI’s next big gamble has unfortunately hit some roadblocks, with the title set to encounter lay-offs due to relationships with “an external partner” coming to an abrupt end.

IO Interactive’s Project Fantasy has been in development for years, with the mysterious title first being officially announced back in early 2023. While little was known about the project, it was confirmed to be an online-based fantasy RPG of sorts.

Though unsubstantiated, rumours did claim at the time that Project Fantasy was tied into Xbox in some way, with IOI simply stating back then “I don't think any word came out about any specifics about this, so we cannot comment on it.”

This of course all comes into play with the most recent announcement, in which IOI confirmed some less-than-stellar news for Project Fantasy, taking to Twitter to write:

“Today we have to share some more downbeat news. 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.”

IO Interactive continued, “Project Fantasy is a game, a world, and an IP that we absolutely love and remain 100% committed to, now and in the future. This wonderful universe will see the light of day.”

This news comes in the wake of recent reports claiming that Microsoft is moving away from working with 2nd/3rd party studios for Xbox, leading many to wonder whether this was what impacted Project Fantasy.

Regardless, IO Interactive seem to have a lot of faith in the product, and are determined to see it through to the end. Hopefully the team are able to fully realise Project Fantasy – and that it proves to be a success if/when it does eventually release.

KitGuru says: What do you think of this announcement? Have you been looking forward to Project Fantasy? Is this related to Xbox’s recent shake-up? Let us know your thoughts down below.

Become a Patron!