Microsoft Corp.’s Xbox division has backed out of a deal with IO Interactive to fund and publish a new game, as the company re-evaluates investment decisions.
IO Interactive, the maker of “Hitman” and popular new release “007 First Light,” plans to continue to develop the game, which has the code name “Project Fantasy.” However, the Copenhagen-based video game developer will be forced to find other funding or publish the game itself.
In a statement to Bloomberg News, an Xbox representative told the outlet the company is “taking a fresh look at where we invest so we’re focusing on our highest priorities.”
“We’re not reducing our overall investment in games,” the rep added. “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 cancellation of the deal follows rumors that Xbox is preparing for significant job cuts, with new CEO Asha Sharma outlining an upcoming “reset” in a memo to staff earlier this month.
