Free NewsletterPro Login
S&P 500 6,287 +0.42%
DOW 44,521 -0.18%
NASDAQ 21,103 +0.71%
S&P 500 +12.4%
Briefs Finance Fund +24.8%
JOIN THE FUND →

Xbox Drops IO Interactive's RPG Project; July Job Cuts Expected

Published Jun 30, 2026
[tts_player]
Share:
Summary:
  • Xbox has halted funding for IO Interactive's Project Fantasy, forcing the studio to seek a new publisher or self-fund.
  • IO Interactive faces staffing decisions as a result of the funding cancellation.
  • Microsoft plans large-scale layoffs starting July 6, 2026 as part of a "reset" under CEO Asha Sharma.

Microsoft's Xbox is pulling money from a video game made by a studio that just sold more than three million copies of its last title. At the same time, the company says it will spend the same amount on games overall.

IO Interactive, the developer behind the Hitman series and the recent hit 007 First Light, had previously partnered with Xbox to fund and publish a game codenamed Project Fantasy. Microsoft's Xbox has withdrawn from the arrangement as part of a review of its spending priorities. IO Interactive, a privately held Danish company, will continue development of the game but now needs to find another publishing partner or fund it independently.

Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter

In a statement to Bloomberg News, an Xbox representative said, "We're "taking a fresh look at where we invest so we're focusing on our highest priorities"." The spokesperson added, "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"."

The decision is particularly striking given IO Interactive's recent track record. 007 First Light launched in late 2024 and exceeded sales expectations, moving over three million units. The studio had been riding that momentum to expand into multiple new intellectual properties, with Project Fantasy as one of its flagship efforts. Now, without Xbox's financial backing, IO Interactive must reassess its development pipeline and potentially its workforce.

Separately, IO Interactive posted on social media that it must "adapt to this new reality and its short-term consequences, including staffing decisions."

Project Fantasy, an RPG, was first announced by IO Interactive back in early 2023. The project was one of several new IPs the studio pursued following the commercial success of 007 First Light, which launched in late 2024 and exceeded sales expectations. Xbox's decision to end funding coincides with its upcoming large-scale workforce reductions scheduled for July 6. Asha Sharma, who became CEO in February, is leading what she describes as a "reset" that could result in shutting down multiple subsidiaries.

The decision to halt funding for Project Fantasy is part of a broader strategic shift under Sharma's leadership. Since taking the helm in February, she has signaled a focus on "highest priorities" and a willingness to restructure. The gaming industry has seen significant layoffs in recent years, and this reset could indicate a more selective approach to partnerships and internal development at Xbox.

Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass

Disclosure

Recent News

1 2 3 30

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

June 29, 2026
Portfolio Diversification: Why Putting All Your Eggs in One Basket Destroys Wealth
  • Real diversification means spreading investments across all 11 economic sectors plus bonds, alternatives, and cash so no single bet can sink the portfolio.
  • Different sectors perform at different times, so a diversified portfolio captures upswings while smoothing the brutal drawdowns that wipe out concentrated bets.
  • Total market index funds offer the simplest path to diversification, and annual rebalancing is what keeps the structure working over time.
Read More
June 29, 2026
Non Taxable Income: What It Is and Why It Matters
  • Non taxable income is money you receive that you don't owe income tax on.
  • The tax code treats workers, investors, and business owners very differently, and investors often come out ahead.
  • Learning how income is taxed is a quiet superpower for keeping more of what you earn.
Read More
June 29, 2026
Semiconductor Stocks: A Simple Guide for Investors
  • Semiconductor stocks are companies that design and make computer chips, the brains inside nearly every modern device.
  • The AI boom has turned chips into one of the market's most important and most watched groups.
  • They offer big growth potential, but come with high valuations and a notoriously cyclical history.
Read More
June 25, 2026
How Stocks Work: A Simple Guide for Beginners
  • A stock is a slice of ownership in a company - buy one, and you own a piece of the business.
  • You make money two ways: the share price rising over time, and dividends paid to shareholders.
  • The simplest path for most beginners is buying into the whole market through a low-cost index fund.
Read More
June 25, 2026
Stop Loss vs Stop Limit: What's the Difference?
  • A stop loss order sells your stock once it hits a trigger price, prioritizing getting you out.
  • A stop limit order only sells within a price range you set, prioritizing price over a guaranteed exit.
  • The trade-off: a stop loss almost always executes; a stop limit might not if the price moves too fast.
Read More
June 25, 2026
Energy Stocks: A Simple Guide for Investors
  • Energy stocks are companies that produce and supply the power the world runs on, from oil and gas to newer sources.
  • They make up one of the 11 sectors of the market and tend to move with energy prices and big-picture shifts.
  • Like any sector, the key is diversification and understanding the forces driving demand.
Read More
June 18, 2026
What Is a Stop Loss Order? A Simple Guide
  • A stop loss order automatically sells a stock once it falls to a price you set.
  • It's a tool to cap losses or lock in gains without watching the market all day.
  • It works best for active strategies, and can backfire if used carelessly on long-term holdings.
Read More
June 18, 2026
Best S&P 500 Index Fund: How to Choose One
  • The best S&P 500 index fund for most investors is simply the cheapest, most established one that tracks the index well.
  • Funds like VOO, IVV, and SPY all hold the same 500 companies, so the biggest difference is the fee.
  • Pick one, automate your buys, and let time do the heavy lifting.
Read More
June 17, 2026
What Are Penny Stocks? Risks and Rewards Explained
  • Penny stocks are very low-priced shares of very small companies, often trading for just a few dollars or less.
  • They promise huge gains but carry huge risks: low liquidity, high failure rates, and wild price swings.
  • Most investors are better served by quality companies and funds than by chasing cheap shares.
Read More
June 17, 2026
Best Stocks for Beginners With Little Money
  • The best stocks for beginners with little money usually aren't individual stocks at all - they're low-cost index funds.
  • You can start with $100 or less and use small, regular investments to build wealth over time.
  • Focus on diversification and consistency, not on picking the next big winner.
Read More
1 2 3 24
Share via
Copy link