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IO Interactive Proclaims Layoffs After Writer Pulls the Plug on Fantasy Recreation

June 30, 2026
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007 First Mild and Hitman developer IO Interactive has introduced layoffs after an surprising setback revolving round its upcoming fantasy sport, which was reportedly set to be revealed by Xbox.

The Danish developer took to social media to verify {that a} relationship with an “exterior accomplice” that was engaged on the studio’s upcoming fantasy sport had ended. In consequence, IO Interactive is shedding an unconfirmed variety of workers, however it insisted it remained dedicated to supporting those that are impacted.

It’s believed that these layoffs are unrelated to the profitable launch of 007 First Mild, which IOI celebrated in the identical submit.

Each Video Recreation Franchise Xbox Owns After Buying Activision Blizzard

This is IO’s assertion in full:

Expensive gaming group,

For whereas, it has been all optimistic information from IO Interactive. We stay humbled and honored by the response to our newest outing with a younger, unproven Bond. A daring new story and a tackle one of the well-known characters in leisure, which the world has embraced with love.

Nevertheless, at this time we’ve to share some extra downbeat information. A relationship with an exterior accomplice on our personal IP, Undertaking Fantasy, has come to an finish. This implies we’ve to adapt to this new actuality and its short-term penalties, together with staffing selections, which is what is going on as we write this replace, and we’re totally dedicated to supporting these affected via this difficult transition.

Undertaking Fantasy is a sport, a world, and an IP that we completely love and stay 100% dedicated to, now and sooner or later. This glorious universe will see the sunshine of day.

Though IO Interactive didn’t explicitly identify the exterior accomplice, Undertaking Fantasy was reportedly set to be revealed by Xbox. In accordance with a leaked doc from the FTC vs. Microsoft trial in 2023, Microsoft had the sport (then generally known as Undertaking Dragon) listed as an unique for Xbox and PC. It additionally acknowledged that the title could be revealed by Xbox Recreation Studios.

The IOI information additionally comes forward what are anticipated to be vital restructuring at Xbox. Microsoft is planning a “reset” for the Xbox model, which is able to reportedly embody studio closures, sport cancellations, and mass layoffs. Unionized Xbox workers are trying to push again towards the reset and cement protections for workers, however it stays to be seen what’s going to occur.

Cade Onder is a freelancer for IGN’s information staff. He covers all issues leisure, together with gaming, movie, and extra. You’ll find him on Twitter @Cade_Onder.



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