Romero Games Allegedly Met with Microsoft a Day Before Funding Was Pulled

Update #3 [Mon 7th Jul 2025, 12am]: Romero Games has virtually ceased operations while it seeks a new publisher.

Earlier this week, as part of Xbox’s significant round of layoffs, it was disclosed that the Redmond corporation had withdrawn funding on the upcoming project from the Galway-based team.

Now it has come to light that the studio met with Microsoft just a day prior to the unfolding events.

An unnamed insider informed The Journal:

“We had discussions with the publisher the day before this occurrence, there was no indication of it. It felt incredibly distant for us. The title was fairly well advanced at that point.”

The studio is currently pursuing other funding sources to complete the game.

Update #2 [Sat 5th Jul 2025, 12:15am]: The doors have shut at Galway-based Romero Games, leaving over 100 employees without jobs after Xbox withdrew funding on the studio’s latest title.

This is according to the Irish outlet The Journal, which corroborates earlier reports on this matter.

While specifics remain unclear, sources suggest that Microsoft-owned Bethesda was set to publish this new first-person shooter from esteemed DOOM designer John Romero and his crew.

However, it discontinued funding this week as part of a broader cost-reduction strategy that saw multiple titles cancelled, one studio closed, and numerous individuals left without jobs.

There is a slight glimmer of hope that Romero Games might secure new funding and restart operations in the future, but for the time being, it has ceased operations.

Update #1 [Thu 3rd Jul 2025, 6pm]: As per the resumes of laid-off developers at Romero Games, the entire studio has been affected in the wake of this week’s Xbox announcement.

Numerous employees across various disciplines – from art to programming – have shared about their situation, with several indicating that the complete team has been dismissed.

One former employee notably expressed that it’s “devastated the studio is shutting down due to budget cuts from the publisher”.

Original Story: A forthcoming project from the renowned DOOM designer John Romero and his team has been terminated as part of the broader Xbox reductions that have shaken the industry this week.

The withdrawal of funding – which Insider Gaming indicates would have been published by Microsoft-owned Bethesda, likely on PS5 along with other platforms – has led to layoffs at developer Romero Games.

In a statement, it stated:

“This is absolutely not a reflection of our team’s efforts, performance, or the quality of the project itself. We achieved every milestone timely, consistently received high accolades, and easily passed all our internal checkpoints. We are immensely proud of our work and of the talented group behind it. The best we’ve collaborated with.”

The studio is currently scrambling to determine its next steps. It also mentioned that “several additional undisclosed projects at other studios” have been impacted as well.

It added:

“This was a strategic resolution made at a high level within the publishing entity, far beyond our visibility or influence. We sincerely wish there had been something, anything, we could have done to avert this outcome.”

It appears layoffs have already impacted Romero Games due to the cancellation, with artist Cristoph Redl among those confirming he’s lost his job.

This week Microsoft laid off more than 9,000 employees globally, with the Xbox division particularly affected.

Amidst the upheaval, the company cancelled prominent first-party games such as Everwild and Perfect Dark, both of which were likely set to launch on the PS5.

Meanwhile, division leader Phil Spencer remains in his position, despite speculations of his retirement. It’s reassuring to know that someone at Xbox still enjoys job security, right?