Romero Games Reportedly Shuts Down Following Xbox Publisher Fallout

Romero Games, the Irish studio founded by iconic developers John and Brenda Romero, has reportedly shut down after the cancellation of its in-development project. The studio, best known for the 2020 release Empire of Sin, was working on a new title backed by Xbox before sudden funding cuts allegedly led to its closure.

💥 Fallout From Xbox Layoffs

Established in 2015, Romero Games quickly gained prominence in the indie development scene due to its legendary leadership. However, in 2025, things took a sharp downturn. The studio’s unannounced game project, which had received backing from a major publisher believed to be Xbox, was suddenly canceled.

This followed mass layoffs at Microsoft and Xbox earlier this year, which affected nearly 9,000 employees across various divisions. The effects of these layoffs, it seems, were not limited to internal studios—third-party partners like Romero Games were also impacted.

💬 Employee Confirms Shutdown

According to a report by The Journal, a Romero Games employee confirmed that the company had been “closed” and that “everyone” was let go. Shockingly, the shutdown came just one day after a meeting with the publisher where the development team was allegedly praised for their “great progress” on the project.

Team members reportedly had full confidence that the game would ship, making the abrupt cancellation and subsequent studio closure all the more devastating. The emotional toll of the project’s collapse was described as “frustrating,” although the team had explored “other ways of funding” before the studio was ultimately shuttered.

🧠 What’s Next for John and Brenda Romero?

While the studio may have closed, the future for John and Brenda Romero remains uncertain but optimistic. Known for their resilience and decades-long influence on the gaming industry, it’s possible they may pursue new independent ventures or shift to publishing, consulting, or mentorship roles within the community.

As of now, there has been no official public statement from the Romeros themselves regarding the reported shutdown.