Xbox ends publishing agreement for 007 First Light developer's fantasy game
As part of the ongoing cuts and reorganization under Xbox CEO Asha Sharma, the company has ended a publishing agreement with IO Interactive for a fantasy role-playing game.
IO Interactive shared a statement on Twitter (X) on Tuesday, stating that its "relationship with an external partner on our own IP, Project Fantasy, has come to an end."
The team goes on to note that because of this, "staffing decisions" have to be made, meaning the team will undergo an unknown number of layoffs.
While the game is not being canceled outright at this time, the lack of a publisher means an uncertain future for the remaining members of the team and the project itself.
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The story so far
IO Interactive, the developer of the Hitman franchise and most recently the excellent 007 First Light, has been working on an ambitious fantasy role-playing game for the past few years.
While Xbox was never publicly disclosed as the backer on this game, leaked documents during an FTC hearing in 2023 indicated that IO Interactive had a game being published by Xbox, then referred to internally as Project Dragon.
When it was announced by IO Interactive, little was known, with the team sharing some concept art (as seen above) for a new title referred to as Project Fantasy.
The changed code name and lack of mention for a backer's involvement — which is unusual for a game being published by a platform holder — led many to believe that Xbox was no longer working on the game, but I can confirm that Xbox was still the publisher. Until now.
This is just one part of the cuts that are unfolding and will continue unfolding over the coming weeks, including the closure of South of Midnight developer Compulsion Games. Right now, my thoughts are with the teams affected at IO Interactive and Xbox, who deserved far better than this.
