Xbox has ended its partnership with IO Interactive to fund and publish the online fantasy RPG Project Fantasy. The move follows a recent restructuring at the company and comes shortly after IO Interactive's successful release of 007 First Light.
IO Interactive announced the development yesterday in a statement. It said a relationship with an external partner on Project Fantasy has come to an end and will lead to staffing decisions in the short term.
The studio added that it remains fully committed to the project. "This wonderful universe will see the light of day," the statement read.
Bloomberg identified the partner as Microsoft's Xbox division. An Xbox spokesperson said the company is focusing on its highest priorities while maintaining overall investment levels in games.
Project Fantasy began development around 2021 and was announced in 2023. It is led by IOI co-owner Christian Elverdam. Xbox's broader restructuring under new leadership is set to begin on July 6.
