xbox

Microsoft pulls funding for IO Interactive’s Project Fantasy as Xbox refocuses spending

Microsoft says it withdrew funding for IO Interactive’s fantasy project as it “focuses on our highest priorities.” The company maintains overall game investment this year should be roughly equal to last year, but is shifting where it invests and which projects it backs. IO Interactive says Project Fantasy will still be completed, while announcing staff layoffs. A wider Xbox reset under CEO Asha Sharma could include layoffs, studio closures or divestitures, and cancellations, with reported cuts beginning July 6.

• Microsoft withdrew funding for IO Interactive’s Project Fantasy
• Xbox says overall game investment unchanged year‑over‑year, but priorities are shifting
• IO Interactive: Project Fantasy will continue; staff layoffs announced
• Xbox reset under CEO Asha Sharma may include mass layoffs, studio closures/divestitures, and cancellations