IO Interactive’s recent breakout success with its James Bond origin title has quickly been tempered by internal restructuring, after a major publishing partnership was unexpectedly dissolved. The Danish studio, known for the acclaimed Hitman franchise, launched 007: First Light to strong commercial and critical reception, moving 1.5 million units on its first day and reaching 3 million sales within two weeks. The title holds a Metascore of 84 out of 100 and a 90% positive rating on Steam.
A Sudden Shift in Publishing Support
That momentum has now been undermined by the end of a separate collaboration with Microsoft’s Xbox division. The partnership, which concerned a new online RPG intellectual property codenamed Project Fantasy, concluded on June 30. The loss of this publishing and funding agreement has forced the company to implement job cuts, a decision IO Interactive confirmed through an official statement on X.
The studio acknowledged the contrast between recent wins and the current setback. “We remain humbled and honored by the response to our latest outing with a young, unproven Bond,” the statement read in part, before addressing the discontinued partnership directly. IO Interactive stressed that Project Fantasy remains a priority and will still be developed, saying, “This wonderful universe will see the light of day.” The firm added that it is fully focused on supporting departing staff through the transition.
Background on the Canceled Partnership
Bloomberg reporter Jason Schreier subsequently identified the former partner as Xbox, which had originally committed to fund and publish Project Fantasy. An Xbox spokesperson told Bloomberg the division is “taking a fresh look at where we invest, so we’re focusing on our highest priorities.” The move aligns with broader signals from Microsoft, where further internal structural changes and significant layoffs are reportedly being readied for July. Within that climate, some high-profile external Xbox projects are said to remain unaffected, while others are being scaled back or halted altogether.
Project Fantasy was being positioned as a new, internally owned universe for IO Interactive, separate from its work on the Hitman series and the Bond license. The studio has not disclosed a revised timeline or publishing arrangement following the split, but its leadership maintains that the concept and its world have full backing despite the immediate impacts on staffing.
Sources: x.com, www.bloomberg.com