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Microsoft Cuts Funding for John Romero’s New Game, Studio Faces Layoffs

▼ Summary

Microsoft’s decision to pull funding from Romero Games’ project led to the entire studio being laid off, as confirmed by employees on LinkedIn.
– Over a dozen Romero Games employees have publicly stated they are now jobless due to the layoffs, which are part of Microsoft’s broader cuts affecting 9,100 employees.
– Brenda Romero, studio director, revealed the publisher withdrew funding unexpectedly, despite the team meeting all milestones and receiving high praise.
– The canceled project was a new first-person shooter with an original IP, developed using Unreal Engine 5, which Romero Games had been expanding to work on since 2022.
– Romero Games is now evaluating next steps and seeking opportunities for its team, with John Romero calling it the best team he’s ever worked with.

Romero Games faces devastating layoffs after Microsoft withdraws funding for John Romero’s upcoming FPS title, leaving the studio’s future uncertain.

The gaming industry was shaken today as multiple employees from Romero Games confirmed the studio’s sudden closure following Microsoft’s decision to terminate financial backing for its unannounced project. Reports indicate the entire team has been let go as part of Microsoft’s broader restructuring, which has already impacted thousands across Xbox and Bethesda.

On LinkedIn, one affected developer shared, “Today, our entire studio was laid off due to Microsoft’s cuts. It’s heartbreaking, this was the best team I’ve ever worked with.” Another echoed the sentiment, calling the situation “nothing less than tragic.” Over a dozen staff members have since posted about their job losses, signaling the abrupt end of what many described as a dream project.

Earlier today, studio director Brenda Romero revealed that their publishing partner, widely believed to be Microsoft, had unexpectedly withdrawn support, leaving the in-development first-person shooter in limbo. “This decision came from well above our level,” she stated, emphasizing that the team had consistently met deadlines and received high praise throughout production. Despite their efforts, the project was axed alongside other unannounced titles in Microsoft’s portfolio.

John Romero, legendary co-creator of Doom, expressed his devastation on social media, calling his team “the best people I’ve ever worked with.” The studio had been expanding since 2022 to develop the new FPS, built in Unreal Engine 5 under a major publisher deal. At the time, Romero Games had teased the project as “John Romero’s next shooter,” sparking excitement among fans of classic FPS design.

Romero Games is best known for Empire of Sin (2020) and the Sigil expansions, but this cancellation marks a major setback for the indie studio. With funding severed and staff dismissed, the company is now scrambling to support its team while evaluating potential next steps.

The fallout from Microsoft’s sweeping layoffs continues to ripple across the industry, with high-profile cancellations including Everwild and Perfect Dark. For now, the fate of Romero Games’ ambitious shooter, and the studio itself, remains unclear.

(Source: IGN)

Topics

microsoft layoffs 95% romero games closure 90% first-person shooter cancellation 85% unreal engine 5 project 80% gaming industry impact 75% john romeros statement 70% brenda romeros revelation 65% employee layoffs 60% studio future uncertainty 55% microsoft restructuring 50%
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