007 First Light and Hitman developer IO Interactive has announced layoffs after an unexpected setback revolving around its upcoming fantasy game, which was reportedly set to be published by Xbox. The ...

Update: Bloomberg have reported that IO's external partner on Project Fantasy was indeed Xbox. Sigh. It's another one of those days, as layoffs are essentially imminent yet again, this time at 007 ...

Update [Tue 30th Jun 2026, 7:15pm]: A subsequent report from Bloomberg’s (paywalled) Jason Schreier confirms that Xbox was the publisher of Project Fantasy and has now pulled its funding. In a ...