Microsoft has confirmed that it pulled out of funding Hitman developer IO Interactive’s new fantasy game, and it’s because the company is re-focusing its spending on the “highest priorities” for the business.

Speaking to Bloomberg, a Microsoft spokesperson said Xbox is “taking a fresh look at where we invest so we’re focusing on our highest priorities.”

The statement went on to claim that Microsoft is “not reducing our overall investment in games,” adding that the total amount of investment this year should be about the same as it was last year.

“What’s changing is where we’re investing and the kinds of projects we’re backing,” Microsoft said.

IO Interactive said its fantasy game, which is in development under the working title Project Fantasy, “will see the light of day.” However, it remains to be seen how IO will go about doing that.

As part of the shakeup, IO is laying off staff, though it’s not immediately clear how many people are affected. In addition to Project Fantasy, many are hoping to see IO make a sequel to 007 First Light.

As for Xbox, the company is undergoing a “reset” of its business under the leadership of Xbox CEO Asha Sharma. This is reportedly going to include mass layoffs, studio closures (or divestitures), and game cancellations. A report said the cuts will begin on July 6.

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