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.
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