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IO Interactive to lay off employees after Xbox pulls support for untitled fantasy game

Game Developer · 2026-06-30 · status reviewed · open original ↗
Starting a business · 0.70

Summary · qwen2.5:32b

IO Interactive is laying off employees following Xbox's decision to pull support for an unnamed fantasy game, illustrating the ripple effects of Xbox's business reset beyond Microsoft itself. One concrete detail is that IO Interactive, known for Hitman and Jacket franchises, will be affected by Xbox’s strategic changes, leading to staff reductions.

Suggested post angle

Impact of Xbox's business reset on game studios

Excerpt

Xbox's business reset is driving layoffs outside of Microsoft.
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