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.

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.
https://x.com/IOInteractive/status/2072005107797893315
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.
Tap a lens to see what this story means for you.
Reader-supported · Daily Brief
Daily brief at 7 AM ET. Top tech stories, every morning. Sourced and fact-checked.
See what’s happening right now
The Feed runs all day — short, verified briefs the moment they break.
Open the FeedFollow @thecircuitry_
Every story we publish, as it happens. No noise between.
Reader-supported
The Circuitry is a passion project I've always wanted to build, and I love the work behind it.
Running it costs real money. APIs, hosting, time. To keep improving the site and growing this into something useful for everyone, those costs have to be covered.
Any contribution is appreciated. If not, no pressure. Thanks for reading.
Microsoft is preparing Xbox layoffs next week that could close at least five studios, including the team behind Marvel’s Blade, and scrap the troubled project as part of cost reductions. The changes belong to a larger reset under new CEO Asha Sharma while the division contends with slipped schedules, overspending, and an unsustainable operation.
Bethesda has confirmed The Elder Scrolls 4: Oblivion Remastered launches on Nintendo Switch 2 on August 11 with a trailer highlighting the Adoring Fan. The news comes as the remaster has already reached 9 million players on other platforms while Microsoft weighs major changes at Xbox.
Atari has agreed to buy approximately 82% of Thunderful Group for roughly $5.2 million, gaining control of the SteamWorld developer and several other studios and publishers. The deal, announced in the July 29, 2025 press release, comes as Thunderful reports declining revenue, weaker-than-expected sales, multiple restructurings, and an upcoming CEO departure. Shareholders are scheduled to vote at an EGM on or about August 28, 2025.