Romero Games, the Ireland-based studio founded by John and Brenda Romero, has reportedly closed after losing funding from Microsoft. The closure follows Microsoft’s decision to pull its publishing agreement for an unannounced first-person shooter developed in Unreal Engine 5.
An anonymous Romero Games employee told The Journal that all 100-plus staff members have been laid off, describing the shutdown as “a big shock.” The employee added that meetings with Microsoft the day before showed no indication of funding being withdrawn, and the game was reportedly well advanced.
While the studio is currently closed, there is still hope that another publisher might step in to rescue the project. Efforts to secure alternative funding are ongoing, but operations have ceased for now.
Romero Games’ closure is part of a wider wave of industry cuts linked to Microsoft. This week, Microsoft announced layoffs affecting over 9,000 employees and canceled several projects, including the reboot of Perfect Dark and Rare’s Everwild. Other notable changes include the closure of The Initiative studio and the departure of ZeniMax Online Studios’ Matt Firor after the cancellation of the long-running Project Blackbird.