Romero Games, the renowned studio led by gaming industry veterans John and Brenda Romero, has reportedly ceased operations following the abrupt cancellation of its undisclosed project. Sources indicate that the closure was triggered by the massive layoffs at Microsoft, which impacted not only its internal studios but also third-party partners like Romero Games.

Microsoft's recent workforce reduction, affecting nearly 9,000 employees, has sent shockwaves through the gaming industry. Among the casualties was Romero Games' upcoming title, which lost funding after its publisher—believed to be Xbox—withdrew support. The situation appears to have escalated beyond initial reports, with employees revealing the studio's complete shutdown.

According to The Journal, a Romero Games employee disclosed that the company was abruptly closed, with all staff being laid off. Shockingly, the team had received positive feedback about their progress just days before the closure, with no warning of the impending shutdown. The cancellation has left developers emotionally drained, though they remain hopeful about finding alternative funding to revive the project.

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While not officially confirmed, Romero Games' closure seems plausible given Microsoft's recent studio shutdowns, including The Initiative (Perfect Dark reboot developer). However, unlike The Initiative, Romero Games was an independent studio rather than an Xbox-owned developer.

This situation echoes Microsoft's 2024 closure of Tango Gameworks (Hi-Fi Rush developer), which was later acquired by Tencent. With John Romero's legendary reputation (creator of Doom and Wolfenstein 3D), there's potential for the cancelled project to resurface under new ownership in the future.