Large-scale layoffs are widely expected at Xbox soon, and funding decisions at the company are already costing game developers their jobs. Xbox has pulled funding from Project Fantasy, the upcoming new IP from Hitman and 007 First Light developer IO Interactive. While IOI says it remains committed to the new game, the funding cut will mean layoffs at the studio.
"A relationship with an external partner on our own IP, Project Fantasy, has come to an end," IO Interactive says in its announcement. "This means we have to adapt to this new reality and its short-term consequences, including staffing decisions, which is what is happening as we write this update, and we are fully committed to supporting those affected through this challenging transition."
