As people were still digesting the news of Microsoft’s massive layoffs in its gaming division, the well-known Irish development studio Romero Games was suddenly caught in the storm. Recently, reports claimed that Romero Games had “completely shut down,” causing more than a hundred employees to lose their jobs—sending shockwaves throughout the industry and gaming community. However, amid the chaos, Romero Games released a statement emphasizing that such reports were inaccurate and that the company “has not shut down.” They added that they are actively seeking new opportunities and doing everything possible to continue operations.
Founded by John Romero, one of the creators of Doom, and his wife Brenda Romero, the studio previously released the strategy game Empire of Sin. They had been working on an unannounced first-person shooter that had drawn considerable anticipation. Unfortunately, the project was recently halted after its funding was withdrawn. While Romero Games could not disclose the identity of the publisher who pulled out, many in the industry speculate that Microsoft may be involved. This speculation isn’t baseless—after all, Microsoft recently made sweeping cuts across its gaming division, shutting down multiple subsidiary studios and canceling several in-development titles.
In their official statement, Romero Games explained: “Our project was indeed canceled, and its funding was withdrawn, which forced us to reassess our overall staffing. However, the company itself still exists. We are doing everything in our power to avoid the worst-case scenario. The claim that ‘the company has already closed’ is not true.”
This statement was clearly in response to a report from the Irish outlet The Journal, which cited anonymous sources claiming that “everyone has lost their jobs,” leading many to believe Romero Games’ story had ended. But as it stands, this does not seem to be the end just yet.
There was a small glimmer of hope in Romero Games’ follow-up message, where they stated that several potential publishers had already reached out, expressing interest in helping the team finish the shelved game. “We are evaluating these partnership opportunities and working hard to give the project a chance at revival,” the statement read.
For many developers, the sudden cancellation of a project is both familiar and brutal. As former Insomniac Games employee Alex Smith once said in an interview: “You could spend three years building a world, and then, suddenly, one phone call and it’s all gone. It’s like someone just swept away the puzzle you’ve been putting together.” For independent studios, the risk is even greater, as they lack the corporate safety net larger companies enjoy—one withdrawn investment can threaten their entire survival.
For John Romero, this challenge may mark another turning point in his long career. In a previous interview with Polygon, he candidly admitted, “This business isn’t about stability—it’s about surviving on passion and adaptability.” Those words feel especially poignant now. From revolutionizing the shooter genre with Doom to facing funding cuts and uncertainty today, his creative journey has always been full of volatility.
The storm hasn’t just hit Romero Games—Microsoft’s recent actions have shaken the entire gaming industry. Reports suggest the restructuring has affected roughly 9,000 employees, including several teams under the Xbox umbrella. Projects such as the Perfect Dark reboot were reportedly canceled, leading to the closure of its developer, The Initiative. In addition, Rare’s Everwild and ZeniMax Online’s MMO project Blackbird have also been scrapped. Even Turn 10 Studios, previously responsible for Forza Motorsport, is rumored to have been “dissolved,” leaving the entire team disbanded.
From these moves, it seems Microsoft is undergoing a complete restructuring of its gaming resources. Such changes inevitably send shockwaves through many third-party studios working with them, creating widespread uncertainty.
Still, not everyone has lost hope. As Romero Games’ statement suggests, there remains a faint but real possibility of recovery. There are still people willing to talk, to collaborate, and even to extend a helping hand. For the industry at large, this serves as a reminder—creativity alone is not enough in such a fiercely competitive and rapidly changing field. It also takes resources, resilience, and a bit of luck to endure.
Whether Romero Games can rise again from this turmoil remains to be seen. But their words deserve reflection from every game developer out there:
“We’re not done yet.”
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