Key Takeaways
Quick overview generated by AI
- Microsoft's Xbox Game Studios experienced significant layoffs, including the closure of Romero Games, which resulted in over 100 employees being dismissed.
- The cancellation of a first-person shooter game project led by legendary DOOM designer John Romero was confirmed, as funding from Microsoft was halted.
- Romero Games may seek a new publisher and secure additional funding to potentially restart operations, rehire staff, and revive the canceled project.
- Financial struggles have affected Romero Games, despite earning solid profits in recent years, underscoring the challenges faced by game studios in securing stable financing for their projects.
Microsoft’s Xbox Game Studios Layoffs Impact Romero Games, Ending First-Person Shooter Project Led by John Romero
Romero Games has ceased operations this week, dismissing over 100 employees, after Microsoft, the high-profile publisher, halted funding for the studio’s upcoming first-person shooter (FPS) game. This action is part of Microsoft’s broader organizational layoffs, which impacted 9,100 staff members, with Xbox Game Studios experiencing significant cuts. The studio’s FPS project, developed with Unreal Engine 5, had been in production since July 2022 with Microsoft’s financial backing. Insider Gaming confirmed the cancellation of this project, which was led by legendary DOOM designer John Romero. Microsoft’s decision to withdraw funding resulted in the dismissal of Romero Games’ entire staff, affecting employees in Galway, Dublin, Sweden, the U.S., Australia, and South Africa. Artist Cristoph Redl confirmed his job loss, and former employees shared the news on LinkedIn. One worker stated, “It’s heartbreaking to say that Romero Games was one of the 9,100 Microsoft layoffs today. I worked with an amazing team, and my dream job is gone just like that.” The Irish publication The Journal reported the dismissal of all staff members and that the studio has effectively ceased game production. The Financial Services Union is currently reaching out to those affected.
Romero Games Seeks New Publisher After Financial Struggles, Potential Restart with Staff and Project Revival
Founded in 2015 in Galway, Ireland, Romero Games is known for Empire of Sin, a strategy game published by Paradox Interactive in 2020. Despite recent financial reports showing solid earnings of $1.5 million in 2024 and $1.2 million in 2023—profits attributed to temporary contracts—the studio could not continue operations without its publisher’s support. Reports by Andy Robinson in Video Games Chronicle and Eurogamer suggest the owners of Romero Games might seek a new publisher and secure additional funding. This could allow the company to restart operations, rehire staff, and revive the canceled project.
In Case You Missed It
In a recent development that has sent ripples through the gaming industry, Jonathan Dubinski explores the implications of Microsoft’s funding cuts on indie game developers in his article “Romero Games, Founded by John Romero, Loses Funding for New Game Following Microsoft Cuts” (July 4, 2025). The piece delves into the fate of Romero Games and its ambitious first-person shooter project, as well as the broader impact on other high-profile titles like Everwild and Perfect Dark. In troubling news for the gaming community, Romero Games recently dismissed its entire team working on an unannounced FPS title due to Microsoft’s recent funding cut (read more about it Romero Games Dismisses Employees Following Microsoft’s Funding Cut), a move that comes as part of a broader restructuring involving over 9,000 layoffs across various studios. This development leaves the talented crew at Romero Games, with decades of experience under their belts, navigating uncertain waters and reaching out for support from the industry. If you’re curious about how these changes are reshaping the gaming landscape or want to learn more about this development and its impact on both developers and gamers alike, be sure to check out Ahmed Hassan’s detailed report dated July 4, 2025 Romero Games, Founded by John Romero, Loses Funding for New Game Following Microsoft Cuts. As we delve deeper into the challenges faced by major players in the tech industry, Microsoft’s Xbox finds itself at a critical juncture. Bruno Pferd’s insightful piece, “Xbox Plunges into New Crisis Amidst Cuts, Cancellations, and Studio Closures,” published on July 4, 2025, examines the recent wave of layoffs and studio closures impacting the beloved gaming brand. With significant changes reshaping Xbox Game Studios, this article sheds light on the uncertainties facing both Microsoft and the broader gaming community. For a closer look at these developments and their implications for the future of gaming, be sure to check out Xbox Plunges into New Crisis Amidst Cuts, Cancellations, and Studio Closures.
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Links to external sources for further reading
- Romero Games Shuttered and Over 100 Staff Axed After Xbox Pulls Fundinghttps://www.pushsquare.com/news/2025/07/romero-games-shuttered-and-over-100-staff-axed-after-xbox-pulls-funding
- Over 100 staff laid off as Galway-based Romero Games shuts down after funding cuthttps://www.thejournal.ie/100-staff-laid-off-galway-romero-games-6753674-Jul2025/
- Romero Games now ‘completely closed’ following Microsoft cuts, it’s claimedhttps://www.videogameschronicle.com/news/romero-games-now-completely-closed-following-microsoft-cuts-its-claimed/
- Romero Games reportedly shuts down after Microsoft pulls funding for its AAA gamehttps://www.notebookcheck.net/Romero-Games-reportedly-shuts-down-after-Microsoft-pulls-funding-for-its-AAA-game.1052030.0.html
- Romero Games suffers from Microsoft layoffshttps://www.videogamer.com/news/doom-co-creator-john-romeros-entire-romero-games-studio-has-been-laid-off-following-microsoft-layoffs-as-xbox-cuts-funding-for-new-fps/