Romero Games has faced a significant setback as its upcoming, unannounced project has reportedly lost funding. This revelation comes in the wake of major layoffs at Microsoft, with sources indicating that the publisher’s cuts were a driving factor behind this unfortunate turn of events.
Brenda Romero shared a statement outlining the situation: “Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios.†She emphasized that the decision was strategic and made at a level beyond their control. “We deeply wish there had been something we could have done to prevent this outcome,†she expressed.
Adding to the turmoil, Christoph Redl, a former hard surface artist at Romero Games, revealed on social media that he had lost his position due to the layoffs at Microsoft Game Studios, lending credence to the idea that the unnamed publisher was indeed Microsoft.
Update3rd Jul 2025 / 2:01 PM
A Romero Games employee has mentioned that the entire studio is being let go due to Microsoft’s cuts, with many developers sharing their job losses on LinkedIn. “Today I found out our whole studio is being let go because of the layoffs at Microsoft,†lamented one artist.
Another designer expressed devastation over the closure, marking it a second instance this year of job searching. They described the cuts as “massive, sudden & unexpected,†stating that the project they worked on was innovative and enjoyable, a stark contrast to the current reality.
The studio’s statement continued to reassure the public, declaring, “This absolutely isn’t a reflection of our team’s work, performance, or the quality of the project itself. We hit every milestone on time, consistently received high praise, and easily passed all our internal gates.â€Â
Romero Games, located in Galway, Ireland, housed around 75 developers in 2024 and was working on a first-person shooter utilizing Unreal Engine 5. This unannounced game is now one of the latest casualties in a week marked by extensive job losses at Microsoft and multiple cancellations across Xbox.
Microsoft’s sweeping layoffs were announced earlier this week, potentially affecting over 9,000 employees. The publisher also faced cancellation of its much-anticipated reboot of Perfect Dark and the closure of The Initiative. Furthermore, Rare’s troubled title Everwild has met a similar fate, along with several senior developers departing the historic studio.
In a similar vein, ZeniMax Online Studios has bid farewell to its head, Matt Firor, amid the cancellation of Project Blackbird, a long-in-development affair. As games continue to face uncertain futures, the industry stands at a crossroads, questioning what the future holds for both developers and gamers alike.