Home News Romero Games' Shooter Loses Funding Amid Microsoft Cuts

Romero Games' Shooter Loses Funding Amid Microsoft Cuts

Author : Lucas Update : Jan 19,2026

Romero Games, the studio founded by gaming legends John Romero (co-creator of Doom) and Brenda Romero, finds itself devastated after sudden funding withdrawal halted their upcoming project. Reports suggest Microsoft's latest restructuring led to this unexpected decision, endangering both the game and development team.

Studio director Brenda Romero confirmed their publisher withdrew financial support overnight, stating in an emotional announcement that this decision affects "several other unannounced projects across multiple studios" beyond just their title.

Brenda and John Romero
Industry veterans Brenda and John Romero. Image credit: Shane Anthony Sinclair/BAFTA/Getty Images for BAFTA.

The shocking development follows Microsoft's sweeping layoffs across Xbox studios, with a former Romero Games employee revealing on social media they've been let go "due to recent Xbox staff reductions." IGN has reached out to Microsoft for official comment.

This announcement arrives mere hours after reports surfaced about Microsoft gutting multiple internal Xbox projects - including high-profile titles like Everwild and Perfect Dark - alongside numerous undisclosed games receiving publisher backing.

"This strategic call came from executive levels far beyond our influence," Brenda Romero explained while expressing frustration over their inability to prevent this outcome despite the team's stellar performance metrics.

The studio emphasized they'd consistently delivered on all development milestones ahead of schedule while earning glowing feedback throughout production. Currently scrambling to navigate this crisis, Romero Games admitted they're "urgently exploring contingency plans" while trying to support displaced staff.

John Romero personally praised his team as "the most talented professionals I've ever collaborated with" while confirming their unannounced FPS project's cancellation resulted in significant studio downsizing.

The studio's portfolio includes acclaimed releases like Sigil (2019), Sigil 2 (2023), and Empire of Sin (2020). While details about their shelved project remain scarce, previous announcements confirmed it was an original first-person shooter built in Unreal Engine 5 with backing from a major publisher.

"We were entering an exciting new chapter," the studio had proclaimed in mid-2022 when securing funding to expand development. At that time, they teased working on John Romero's next groundbreaking FPS - a prospect now indefinitely shelved amidst Microsoft's sweeping gaming division restructuring.