Things seem to be getting a little more complicated for IO Interactive as the team has announced that its upcoming Project Fantasy has had funding pulled from an “external partner.” Because of the sudden loss of support, the social media post states that the company will have to deal with the “short-term consequences” or lay off an unknown number of developers. While this will certainly be a massive setback for the game, the studio says it is “100% committed” to the IP and game, so it is not facing cancellation at this time.
Xbox Pulls Project Fantasy Funding
While IO Interactive did not state who the external partner is, it is largely believed to be Xbox. During Microsoft’s battle with the FTC over the Activision acquisition, the court document below showed that the developer was “Currently developing Project Dragon with XGS Publishing.” Combine this with the tidal wave of rumors of Xbox backing out of deals with various third parties and getting ready for massive layoffs and closures of its own, and it’s almost certain that Xbox is the one pulling funding for its poor financial situation under Microsoft.
Soon after IO posted the news, Jason Schreier of Bloomberg posted that an Xbox spokesperson responded with a comment saying that the publishing side is “taking a fresh look at where we invest so we’re focusing on our highest priorities.”
While it expects to invest the same amount overall this year, Xbox is shifting its focus to the kinds of projects it backs. The company seems to be facing such financial turmoil that it will no longer support any projects that are not proven successes. Going forward, you should expect a lot less innovation and experimentation associated with Xbox, and a lot more focus on games like Call of Duty that have established fan bases.
