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Multiple outlets including Rock Paper Shotgun, Kotaku, PC Gamer, and IGN corroborate IO Interactive's June 30, 2026 announcement of layoffs after its external partner ended work on Project Fantasy.

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Home/Gaming/IO Interactive Cuts Staff After Fantasy Game Partner Split
VERIFIEDBy Xavier Rivera· ·1.5 min read

IO Interactive Cuts Staff After Fantasy Game Partner Split

IO Interactive has laid off an undisclosed number of staff after ending its relationship with an external partner on its fantasy game project, widely believed to involve Xbox publishing. The move is unrelated to the successful release of 007 First Light, though it forces the studio to adapt its plans while pledging support for those affected.

Source:IGN
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IO Interactive Cuts Staff After Fantasy Game Partner Split
TL;DRAI · 60 sec read

IO Interactive cuts staff after ending its partnership with an external partner on a fantasy game. Reports indicate the partner was likely Xbox, as the project was previously slated as an exclusive. The layoffs result directly from this change and have no link to the success of 007 First Light. The studio commits to supporting those affected.

IO Interactive has announced layoffs after ending its relationship with an external partner on its upcoming fantasy game project.

IO Interactive ends external partnership on fantasy title. The Danish studio, known for Hitman and the recently released 007 First Light, confirmed the development via social media on June 30, 2026. Multiple outlets including Rock Paper Shotgun and Video Games Chronicle report the partner was widely believed to be Xbox, with internal 2023 documents listing Project Fantasy as an Xbox exclusive.
Multiple outlets including Rock Paper Shotgun and Video Games Chronicle report the partner was widely believed to be Xbox, with internal 2023 documents listing Project Fantasy as an Xbox exclusive.

The split has prompted staffing decisions at the studio. IO Interactive did not disclose the exact number of affected employees.
POST FROM @IOInteractive· official announcement tweet referenced and linked in the article
https://x.com/IOInteractive/status/2072005107797893315

Studio commits to supporting laid-off staff. In its statement, IO Interactive said it remained committed to supporting those impacted by the layoffs. Rock Paper Shotgun quotes the studio emphasizing its focus on helping the affected team members during the transition.
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Video Games Chronicle reports the studio is now adapting to a new reality following the end of the publishing arrangement. The move comes despite the successful launch of 007 First Light, which the studio celebrated in the same social media post.
Both Rock Paper Shotgun and Video Games Chronicle note that the staffing changes stem directly from the fantasy project setback and have no connection to the positive reception of 007 First Light.

Layoffs unrelated to 007 First Light performance. Both Rock Paper Shotgun and Video Games Chronicle note that the staffing changes stem directly from the fantasy project setback and have no connection to the positive reception of 007 First Light. The studio highlighted the Bond game's success even as it addressed the layoffs.
IO Interactive has not provided further details on the future of Project Fantasy or potential new publishing arrangements. The studio continues work on its active titles while managing the impact of the partner split.
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