Back to today’s briefing

Story perspectives

IO Interactive Ends Partner Deal, Commits Fully to Project Fantasy

7/1/2026

49 5 Full Breakdown

Summary

IO Interactive Commits

IO Interactive's partnership on Project Fantasy IP with an external partner has ended.
IO Interactive stated it remains 100% committed to developing Project Fantasy.

Summary

IO Interactive Layoffs

IO Interactive confirmed layoffs of an undisclosed number of staff as a result of the partnership ending.
Xbox withdrew funding and publishing duties for Project Fantasy, citing a shift in investment focus amid reports of broader Xbox restructuring that may involve studio closures and further job cuts.
Analysts say IO Interactive may need to self-publish Project Fantasy, while the studio affirms its 100 % commitment to finish it.

History

Historical Context

Midway Games' Chapter 11 filing on 12 February 2009 followed Warner Bros. Interactive’s withdrawal of publishing support and a $33 million takeover bid, leading to 1,200 layoffs. A similar pattern emerges as Xbox pulled funding for IO Interactive’s Project Fantasy, prompting undisclosed cuts and forcing the Danish studio to consider self-publishing, highlighting the fragility of mid-size developers reliant on external publishers.

1 of 3

IO Interactive Commits

IO Interactive's partnership on Project Fantasy IP with an external partner has ended.
IO Interactive stated it remains 100% committed to developing Project Fantasy.

1 / 3