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Startups & Venture·July 7, 2026·1 min read

'These are hard, but necessary decisions' — Xbox pulled funding for Io Interactive's 'Project Fantasy' but the developer will continue working on the game independently

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Platform funding is proving cyclical—when a backer like Xbox pulls out, only studios with real IP, community, or cashflow can keep big projects alive. If your roadmap leans on a single strategic partner, treat this as a prompt to diversify funding sources or scope projects so they can survive a sudden capital shock.