- Microsoft's Xbox has pulled out of a deal to fund and publish a game with IO Interactive, the maker of Hitman and 007 First Light, as it re-evaluates investment decisions.
- IO Interactive will continue to develop the game, which is code-named Project Fantasy, but will need to find other funding or publish the game itself.
- Job losses are expected as Xbox has exited the deal to fund and publish IO Interactive's online fantasy RPG, codenamed Project Fantasy.
- IO Interactive stated it must adapt to this new reality and its short-term consequences, including staff decisions.
- Xbox clarified that it is taking a fresh look at where it invests, focusing on its highest priorities, but is not reducing its overall investment in games.
- IO Interactive remains 100% committed to Project Fantasy and promises that the game will see the light of day.
- Xbox is expected to begin layoffs next week, coinciding with the funding withdrawal.
- CWA District 9 VP Frank Acre stated that staff within Microsoft's gaming division will not be treated as disposable amid reports of layoffs.
- Xbox respects the right of team members to make their voices heard and has a long track record of good faith partnership with labor organizations.
Microsoft's Xbox has pulled out of a funding deal with IO Interactive for Project Fantasy, a decision that could result in job losses for the developer. The Danish studio, known for its work on Hitman, is now tasked with finding alternative funding or self-publishing the game.123456781011
An Xbox spokesperson stated, “we’re taking a fresh look at where we invest so we’re focusing on our highest priorities,” while assuring that the company is “not reducing our overall investment in games.” Despite the setback, IO Interactive remains “100% committed” to Project Fantasy, promising that “this wonderful universe will see the light of day.”
The developer acknowledged the need to “adapt to this new reality and its short-term consequences, including staff decisions.” In response to potential layoffs, CWA District 9 VP Frank Acre emphasized that staff within Microsoft's gaming division “will not be treated as disposable.” He added, “Every company faces real business challenges and pressures. That is a fact.”9
Xbox has a history of good faith partnerships with labor organizations, and the company stated it respects “the right of our team members to make their voices heard.” The firm is continuing negotiations with the CWA to reach agreements across Xbox, indicating a commitment to its workforce even amid financial reevaluations.
“Microsoft's Xbox has exited its funding deal with IO Interactive for Project Fantasy, prompting the developer to seek alternative funding. The move raises concerns about potential job losses as IO Interactive adapts to this new reality.”
GamesIndustry.biz
