Key Takeaways:
- Microsoft laid off over 9,100 employees in its latest round of cuts.
- Romero Games’ new project was canceled, and the entire studio was reportedly let go.
- Halo Studios suffered staff reductions but continues development on future titles.
- Multiple unannounced projects across Xbox-affiliated studios were terminated
The gaming industry was shaken this week after Microsoft’s widespread layoffs affected several high-profile studios, including Halo developer 343 Industries and Romero Games. The cost-cutting measures reportedly impacted over 9,100 employees, marking the company’s largest workforce reduction since 2023.
Romero Games Project Canceled After Publisher Pulls Funding
Romero Games, the Irish-based studio founded by legendary game designer John Romero and industry veteran Brenda Romero, confirmed on July 3, 2025, that its in-development title had been abruptly canceled. In a public statement, Brenda Romero said the decision came after their publisher withdrew funding:
“This was a strategic decision made at a high level within the publisher, well above our visibility or control,” she wrote.
While the publisher was not explicitly named, GameSpot reports it was Microsoft, tying the cancellation to the same restructuring wave that struck other internal Xbox studios.
Romero emphasized that the team had met all milestones and maintained high quality standards. Despite their efforts, the entire team has now been let go.
Also read: Free Fire Esports Returns to India with FFMIC 2025, Set to Rival BGMI Scene
Halo Studios Loses Staff but Continues Development
Halo Studios (343 Industries) was also hit by layoffs, reportedly losing at least five staff members. Although the cuts were less severe than at Romero Games, sources say 200 to 300 developers remain at the studio.
According to a Teams call cited by Engadget, the layoffs were aimed at increasing “agility and effectiveness.” Despite the downsizing, work on upcoming Halo titles — including a sequel to Halo Infinite — is still ongoing.
ZeniMax MMORPG and Other Titles Axed
The layoffs also led to the cancellation of a highly anticipated, unannounced MMORPG from ZeniMax Online Studios. Microsoft appears to have scrapped several in-development games across multiple subsidiaries. These sweeping changes have raised concerns about the stability of projects within Xbox Game Studios and Microsoft’s overall gaming strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of GameDegen.com. Before making any investment decisions, you should always conduct your own research. GameDegen.com is not responsible for any financial losses.
