IO Interactive, the developer behind the Hitman series and 007 First Light, has just confirmed that a relationship with an external partner has come to an end. Though it hasn't been stated outright, IO Interactive's announcement of the conclusion of this partnership does seem to hint that the company is now experiencing layoffs, despite the recent success of 007 First Light.
Founded in 1998, IO Interactive is a Danish developer that's arguably best known for its work on the Hitman franchise. After creating Hitman in 2000, IO went on to develop a further seven Hitman entries, as well as the more divisive Kane & Lynch duology. Of course, IO Interactive's most recent release was 007 First Light, the Bond franchise's first major video game adaptation since 2013.
IO Interactive May be Experiencing Layoffs
On June 30, IO Interactive's official Twitter account shared a text post. This post began with a reflection on the success of 007 First Light, the studio's latest game that's confirmed to have sold over 3 million copies. IO calls 007 First Light a "bold new story and a take on one of the most famous characters in entertainment, which the world has embraced with love."
Who’s That Character?
Identify the silhouettes before time runs out.
IO Interactive then counters this positive reflection with what it calls "some more downbeat news." It confirms that a relationship with an external partner on IO's original IP, Project Fantasy, has just come to an end, and that the company must "adapt to this new reality and its short-term consequences." These consequences include "staffing decisions," with IO Interactive stating that it's "fully committed to supporting those affected through this challenging transition." Though this announcement doesn't specifically state it, this type of language has become closely associated with layoffs, especially in the gaming industry, and especially in the last few months.
Xbox Was IO Interactive's Partner
While IO Interactive never publicly confirmed who its partner was for Project Fantasy, some leaked documents from the FTC v. Microsoft case suggested that Xbox was that partner. This is now 100% confirmed to be true, with Bloomberg having just received an official statement from an Xbox spokesperson regarding IO Interactive's announcement. In their statement, the Xbox spokesperson said: "We're not reducing our overall investment in games... We expect to invest about the same in content as we did last year. What's changing is where we're investing and the kinds of projects we're backing." It's been heavily rumored that Xbox is planning significant layoffs in July, with some sources suggesting that Ninja Theory, Double Fine, Compulsion Games, and now Marvel's Blade developer Arkane are all in the firing line.
Rearrange the covers into the correct US release order.
Rearrange the covers into the correct US release order.
While the studio is suffering "short-term consequences," IO's statement does end on a hopeful note, with the company reiterating that it's "100% committed" to Project Fantasy, and ending with the line, "This wonderful universe will see the light of day." Just last month, IO Interactive CEO Hakan Abrak told The Game Business that Project Fantasy was "in a very healthy place, it's still financed, and it's amazing."
007 First Light
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OpenCritic Reviews
- Top Critic Avg: 87/100 Critics Rec: 96%
- Released
- May 27, 2026
- ESRB
- Teen / Blood, Language, Suggestive Themes, Violence, In-Game Purchases
- Developer(s)
- IO Interactive
- Publisher(s)
- IO Interactive
