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announced layoffs following the end of its relationship with an external partner involved in its February 2023-announced Project Fantasy. confirmed to Bloomberg, following leaks from the FTC v. Microsoft court proceedings, that it is the publishing partner in question.
“We’re not reducing our overall investment in games,” a Microsoft spokesperson told Bloomberg. “We expect to invest about the same in content as we did last year. What’s changing is where we’re investing and the kinds of projects we’re backing,”
Xbox itself is reportedly planning to announce a wave of layoffs starting next week that could result in the closure or spin off of at least five studios, as part of a “reset for a stronger Xbox” hinted at by Xbox CEO Asha Sharma.
Here is the full message from IO Interactive on the layoffs:
Dear gaming community,
For a good while, it has been all positive news from IO Interactive. We remain humbled and honored by the response to our latest outing with a young, unproven Bond. A bold new story and a take on one of the most famous characters in entertainment, which the world has embraced with love.
However, today we have to share some more downbeat news. A relationship with an external partner on our own [intellectual property], Project Fantasy, has come to an end. This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition.
Project Fantasy is a game, a world, and an [intellectual property] that we absolutely love and remain 100 [percent] committed to, now and in the future. This wonderful universe will see the light of day.
