IO Interactive in Trouble, but Project Fantasy Confirmed
Microsoft is likely involved

Who remembers Project Fantasy? This mysterious title has been rumored for at least five years, but information about it is almost non-existent. We know it's a new intellectual property and that its creator, the Danish studio IO Interactive, describes it as an online fantasy RPG, but little else. Unfortunately, the project has just suffered a serious setback, but it will be carried forward.
Layoffs at IO Interactive
Despite the recent success of 007 First Light, the Danish company is going through a difficult time: a message via Twitter/X announced that a Project Fantasy partner has pulled out, which forced the painful decision to lay off some staff. The name of this partner is not mentioned, but Microsoft is a strong suspect.
007 First Light
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We know that Project Fantasy was being developed in collaboration with Microsoft, which has also initiated a significant restructuring of its gaming division in recent weeks (just today we were talking about the possible cancellation of Blade). Despite the adversities, IO Interactive confirms its intention to continue the work, assuring that Project Fantasy will see the light of day eventually.
Dear gaming community,
— IO Interactive (@IOInteractive) June 30, 2026
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…



