Microsoft abandons its involvement in Project Fantasy, the new RPG from IO Interactive

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By Rita Ora

This is not going to be a month of good news for Xbox. Everything indicates that next week we will have to talk about a complete restructuring of Microsoft’s games division that will result in the closure or sale of several studios and a large number of layoffs, but even companies like IO Interactive, which is still savoring the honeys of success with 007 First Light, have been affected by this change of course.

The Danish study has reported that «a relationship with an external partner» to launch Project Fantasy, a new online RPG that we barely had news about, has come to an end. «This means that we must adapt to this new reality and the short-term consequences, including making staff decisions, which is what is happening as we write this update,» they lament at the Hitman home.

One of the many unknowns surrounding Project Fantasy was who was funding it; a question that has been resolved by Jason Schreier. According to the Bloomberg journalist, Microsoft was the company that planned to publish the game, but after reevaluating the situation of all its projects, it has decided to withdraw.

According to a spokesperson for the Redmond firm, «we are not reducing our overall investment in games. We expect to invest in content about the same as last year. What changes is where we invest it and the kind of projects we finance.» IO Interactive’s game would clearly fall outside of those priorities.

From the little that had emerged from Project Fantasy, we would find ourselves with an online fantasy role-playing game designed to be continually updated for many years and in which the Copenhagen, Malmo and Barcelona offices would be involved. IO Interactive had placed a lot of hope in this development that has its roots back in 2021, when the first rumors appeared about what we once knew as Project Dragon, and that will now have to find a new home to avoid cancellation.