• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Gameranx

Gameranx

Video Game News, Lists & Guides

  • News
  • Features
  • Platforms
    • Xbox Series X
    • PS5
    • Nintendo
  • Videos
  • Upcoming Games
  • Guides

IO Interactive Has Taken Back Project Fantasy, And Now Has To Lay Off Staff To Survive

July 8, 2026 by Ryan Parreno

The sad ironic state of the industry, illustrated.

IO Interactive has made some huge announcements about Project Fantasy and the studio itself.

While IO has yet to reveal the game completely, they have heavily suggested its fantasy theme. The rumor going around is that this will be a huge online fantasy RPG, and that the title is being bankrolled by Xbox.

Shortly after Asha Sharma’s Resetting Xbox newsletter, IO Interactive made this announcement:

Following the end of our external finance partnership on Project Fantasy, IOI has regained full ownership of the project and our IP. We will continue to develop and fund it independently amongst our other projects.

…This has meant making changes as well as proposed changes across our studios: the closure of our Istanbul studio and starting a process to part ways with colleagues who have been a meaningful part of what makes IOI what it is.

Neither IO or Xbox confirmed that Xbox was funding Project Fantasy, possibly part of the deal that allowed them to take the IP back.

Regardless if IO is collateral damage to Xbox’s reset or not, this shows how paradoxical the industry is sometimes, that sometimes layoffs are necessary to survive and continue making games.

Share this post:

FacebookTwitterLinkedInPinterest

Recent Videos

GTA 6 vs GTA 5 Gameplay: What's Changed?

GTA 6 vs GTA 5 Gameplay: What's Changed?

10 Upcoming Games That WILL PUNISH YOU

10 Upcoming Games That WILL PUNISH YOU

BUNGIE IN BIG TROUBLE? NEW GTA 6 SCREENSHOTS & MORE

BUNGIE IN BIG TROUBLE? NEW GTA 6 SCREENSHOTS & MORE

Onimusha Way of the Sword: 10 Things The Game DOESN'T TELL YOU

Onimusha Way of the Sword: 10 Things The Game DOESN'T TELL YOU

Halloween: The Game - Before You Buy

Halloween: The Game - Before You Buy

5 Games That Look VERY DIFFERENT With Nvidia DLSS 5

5 Games That Look VERY DIFFERENT With Nvidia DLSS 5

The Blood of Dawnwalker - Before You Buy

The Blood of Dawnwalker - Before You Buy

10 WEIRD Gaming Stories of August 2026

10 WEIRD Gaming Stories of August 2026

Onimusha: Way of the Sword - Before You Buy

Onimusha: Way of the Sword - Before You Buy

Category: UpdatesTag: I/O Interactive, io interactive, PC, Project Fantasy, PS5, Switch 2, Xbox Series X/S

Sidebar

Recent Posts

  • Luigi’s Mansion 4, Super Smash Bros 5, Nintendogs: Here’s What’s Rumored For The Nintendo Direct And Beyond
  • The Legend Of Zelda 40th Anniversary Direct + Nintendo Direct Double Dashes This Week!
  • PlayStation & Xbox Move To Dismiss Tariff Consumer Lawsuits – But Nintendo’s Situation Is Different
  • Neil Druckmann: “We’re Not Done With The Last Of Us” – Is Part 3 Really In Development?
  • Rumor: The Legend of Zelda: Ocarina of Time Game And Accessory SKUs Leaked

Copyright © 2026 · Gameranx · All Rights Reserved · Powered by Mai Theme