Romero Games is reeling from the news that Microsoft has pulled funding for their in-development first-person shooter, leading to the entire studio facing layoffs. Affected employees have expressed their heartbreak on social media, sharing the shock of losing their jobs amid the larger context of Microsoft's extensive layoffs, which affected numerous Xbox studios and canceled several projects. Studio director Brenda Romero stated that this decision was made at a high level, without their ability to influence it. Despite consistently achieving project milestones and receiving positive feedback, Romero Games now seeks to support their affected team and explore next steps after this significant setback.

What led to the layoffs at Romero Games?

The layoffs at Romero Games were primarily due to Microsoft deciding to pull funding for their upcoming project, which was part of broader layoffs at the company affecting various Xbox studios and projects.

Romero Games, known for its connection to industry legend John Romero, previously released titles such as Sigil and Empire of Sin. They had been developing a new first-person shooter using Unreal Engine 5, which was anticipated to bring fresh creative energy from the iconic developer. The studio's partnership with a major publisher gave hope for this new IP, making the sudden funding withdrawal particularly devastating for both the team and fans of Romero's work.