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IO Interactive is laying off staff after Microsoft's Xbox withdrew funding from Project Fantasy, the studio's upcoming online RPG. The partnership dissolution leaves the game in limbo and forces the developer to restructure operations.

what's happening

·Xbox has ended its partnership with IO Interactive on Project Fantasy, an online RPG in development

·IO Interactive is conducting layoffs in response to the publisher pulling funding from the project

·The cancellation marks a significant setback for the studio's planned multiplayer fantasy title

·Hideo Kojima's separate project OD remains in active development at the studio

·Kepler Interactive separately acquired a stake in indie publisher Oro Interactive from venture capital

drawn from Bloomberg.com, GamesIndustry.biz, NZ Herald, Game Informer · updated 8h ago

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