007 First Light’s developer lays off staff but claims its next franchise will continue

IO Interactive, the studio behind the Hitman series and 007 First Light, announced that it is laying off staff after a relationship with an “external partner” on its next big franchise, Project Fantasy, “has come to an end.” IO has described Project Fantasy as an “online fantasy RPG”, and Kotaku and Bloomberg report that Microsoft, which is planning significant cuts as part of a broader “reset” of the Xbox business, was going to be the game’s publisher.

It’s unclear how many people will be affected by IO’s “staffing decisions.” The company says “we are fully committed to supporting those affected through this challenging transition.” IO also notes that it remains “100% committed to” Project Fantasy and promises that “this wonderful universe will see the light of day.”

An Xbox spokesperson, in a statement to Bloomberg, says that the company is “taking a fresh look at where we invest so we’re focusing on our highest priorities.” The spokesperson adds that Xbox is “not reducing our overall investment in games” and that “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.”

IO and Xbox didn’t immediately reply to a request for comment from The Verge.

Here is IO’s full message about the changes, from X:

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.