Key Takeaways:
- Romero Games’ next AAA FPS was cancelled after its publisher pulled funding, likely linked to Microsoft’s recent layoffs.
- Despite the cancellation, new publishers have shown interest in reviving the game, offering a glimmer of hope.
- The studio remains open but may face layoffs if new funding isn’t secured soon.
The video game industry has been in crisis in 2025, with mass layoffs and high-profile cancellations shaking even the most iconic names in development. But amid the upheaval, Romero Games, founded by legendary Doom co-creator John Romero, remains intact—at least for now—despite losing critical funding for its next big title.
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Publisher Pulls Funding on Romero’s Next FPS
Romero Games was deep in development on a AAA first-person shooter, backed by a mystery publisher that many speculate to be linked to Microsoft. This assumption arose after Microsoft’s sweeping layoffs last week, which saw 9,000 employees cut and several internal projects—including the Perfect Dark reboot and Forza team—abruptly shuttered.
Following the wave of cuts, Romero Games revealed that its publisher had unexpectedly pulled out, leaving the project in limbo. While confidentiality agreements prevent the studio from naming the partner, the timing has led many to draw connections to the broader chaos stemming from Xbox’s internal shakeups.
New Publishers Express Interest in Saving the Project
Despite the setback, Romero Games has not closed its doors. In a new public statement, the studio confirmed it is actively speaking with other publishers interested in picking up the cancelled title. While no new deals have been finalized, the development team is optimistic that the game could still be completed if the right partner steps in.
This lifeline offers hope for a studio with a storied legacy and a founder who helped shape the FPS genre.
Layoffs Still a Threat as Studio Re-Evaluates
Although Romero Games remains operational, its future depends on securing new funding. Management is currently reassessing staffing needs, and layoffs are a real possibility if a deal doesn’t come through. That said, the fact that publishers are already reaching out indicates there’s still confidence in Romero’s vision.
With many fans and industry insiders rooting for the studio, the coming weeks could determine whether this project is revived—or if another talented team is lost to an increasingly unforgiving industry climate.
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