It’s hard to see one of the most influential creators in the world of gaming struggle like this. John Romero, alongside Romero Games, was seemingly impacted by the massive layoffs that occurred on July 2, 2025, at Microsoft. As the tech giant is quick to invest $80 billion into AI, as reported by the BBC, and cancel some of the biggest upcoming games for the platform, it’s hard to imagine that anyone could be safe at this point. But, sometimes, not every story is DOOM and gloom. Romero Studios did suffer layoffs, but the studio is still standing. It appears that Romero isn’t going down without a fight, and publishers are ready to do their part.

“This Is a Team and a Game Worth Fighting For.” Romero Games Is Keeping the Flame Alive, However They Can

Originally reported by VGC, it seemed that Romero Games was gone. Microsoft recently laid off 9,000 employees, the second mass layoff in months. Even one of the founding members of modern gaming, John Romero, and the team at Romero Games couldn’t escape the hellfire going on behind the scenes. However, it seems the reports of their demise were slightly exaggerated. Funding was pulled, and the project was, unfortunately, canceled. But the studio lives to see another day, according to a recent update posted on the official Romero Games LTD. X account.

Tl;dr – This is a team and a game worth fighting for. Follow @romerogamesltd for future updates. https://t.co/exrBFFi4NP

— John Romero 🤘🏽 (@romero) July 7, 2025

More importantly, it seems that many publishers are interested in what Romero Studios is working on behind the red curtain. In a perfect world, we’d see New Blood Interactive pick up the publishing rights to whatever Romero and his crew are working on. But only time will tell what may happen. Another important piece to note about the update is the second bullet point. While Romero Games can’t disclose the publisher’s identity, the timing of the cancellation and the layoffs at Microsoft help paint a pretty solid picture of who is to blame. As shared with Insider Gaming author Tom Henderson, the tone-deaf memo shared by Phil Spencer seems to point in the correct direction of who is at fault.

I mean, you can read it from the man himself. We know what happened and can only hope that a new publisher can help this game and team get back on its feet.