Update: 07/07/2025 21:41BST – Romero Game has clarified that the studio will not be shutting down, but is discussing next steps with the team. It has also claimed to have been contacted by several publishers that want to help finish its game, but Romero Games is “evaluating” its options. Original story follows.
It’s been a terrible few days for the gaming industry. Xbox, which has been letting go of thousands of employees and shutting down studios over the past two years, just had a fourth round of layoffs. It was brutal. ZeniMax and King saw major cuts, while Everwild and the Perfect Dark remake were cancelled. Amidst this mass culling, a legendary developer’s studio has also been brought to the brink of shuttering.
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John Romero’s Romero Games just released a statement saying that the project the studio has been working on has been defunded. Microsoft’s funding of the project was unknown till now, but the timing suggests that Romero Games was part of the massive cuts that the company made yesterday.
Romero Games Lets Go Of Numerous Employees After Xbox Defunds Its Game
‘We have some difficult news to share. Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios,” said a statement by Brenda Romero. “This was a strategic decision made at a high level within the publisher, well above our visibility or control. We deeply wish there had been something, anything, we could have done to prevent this outcome.
“This absolutely isn’t a reflection of our team’s work, performance, or the quality of the project itself,” it continued. “We hit every milestone on time, every time, consistently received high praise, and easily passed all our internal gates. We are incredibly proud of the work being done, and of the talented team behind it. The best we’ve worked with.”
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A number of Romero Games employees have also posted to LinkedIn about losing their jobs and hoping to find new employment.
It’s been a horrible few days for those working in the gaming industry. Tons of jobs lost because the higher-ups at Xbox have no idea what they’re doing, and keep flip-flopping on strategies. Amidst all of this, there were even rumours of Phil Spencer retiring, which ultimately turned out to be untrue.
“It’s an extremely difficult day, and we’re heartbroken that it’s come to this. If you know of any opportunities or ways you can help our incredible team, please reach out,” concluded the statement.
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