
Among Microsoft’s layoffs and cancellation of games, studios were also severely affected, as in the case of Romero Games, developer founded by John Romero, who lost Microsoft’s funding.
According to new information, Microsoft met with Romero Games, just a day before cutting the financing, not to mention any intention to cancel with the developers.
The studio suffered a carpet tug with the removal of financing for a well-developed FPS project, according to a former employee.

Romero Games, led by John Romero, was allegedly closed after cutting backgrounds, affecting more than 100 employees, including 42 direct and other external employees.
The canceled game received consistent compliments, reached all developmental milestones on time and easily went through internal evaluations. Romero Games is trying to find alternative financing sources to save the project.
The decision is part of a wave of layoffs and cancellations in Microsoft’s Xbox division, including the closure of The Initiative, Cancellation of Perfect Dark, Everwild and an MMO of Zenimax Online.
Source: Windows Central
Source: https://www.gamevicio.com/noticias/2025/07/romero-games-microsoft/