Back in 2023, we first got wind of Hitman development studio IO Interactive’s Project Fantasy, an online fantasy RPG that sought to evoke tabletop RPGs with distinct roles and the suggestion of a game master at the helm. There hasn’t been much noise out of the project since then, that is until yesterday, when the studio announced trouble for the still-developing title.
“A relationship with an external partner on our own IP […] has come to an end,” the studio announced on Twitter. “This means we have to adapt to this new reality and its short-term consequences, including staffing decisions. […] [W]e are fully committed to supporting those affected through this challenging transition.”
While news of how many developers being affected by this hasn’t been made clear, a statement from Xbox to Bloomberg confirms that it was the alluded-to “external partner” that has pulled its funding from the game. “We’re not reducing our overall investment in games,” a spokesperson says, “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.”
This once more continues the agonizing drop feed bad news for Xbox and Microsoft’s gaming, as we await more details on looming layoffs across Microsoft’s gaming studios. As for Project Fantasy, IOI is still determined to see the game cross the finish line. “Project Fantasy is a game, a world, and an IP that we absolutely love and remain 100% committed to, now and in the future,” the studio’s statement concludes. “This wonderful universe will see the light of day.”
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…
— IO Interactive (@IOInteractive) June 30, 2026
