Not much is known a this point but job listings and documentation from IO refers to a AAA, connected-world RPG. The team is known internally to IO as “Department Dragon” thus causing the leak to referred to as “project dragon” for Xbox and IOI.
A few months ago, I received information that Microsoft and IO Interactive were in talks for a new fantasy RPG, dubbed Project Dragon. While it’s too early to share any sort of gameplay details — the final product may look wildly different than the initial pitch — what’s on paper thus far sounds incredibly ambitious, and represents a completely new direction for IO.
Xbox is being increasingly ambitious in developing AAA both games internally, and with partners across the industry. Should this title develop as planned, that would make several AAA RPGs in development for Xbox including Starfield, Avowed, Fable, Obsidian’s and inXile’s projects, and more.