Following reports that layoffs caused byMicrosofthad led to Romero Games shutting down, the indie studio released a statement to clear up the confusion. Although one of the studio’s projects did lose funding, as of now, the studio is not planning to shut down. According to Romero Games' statement, they are actively looking for a way to move forward.
In a post onTwitter, Romero Games made it clear that, although they would need to assess their staffing situation,the studio was not closing. The statement also says that Romero Games has been in contact with other publishers that are interested in helping the studio finish its game. As of now, they have not decided on a course of action, but it is clear that the studio plans to do its best to stay open.

What This Means For Romero Games
Romero Games Still Felt An Impact From Recent Xbox Layoffs
Although Romero Games was adamant that it is doing its best to stay open, the statement still makes it clear thatthe studio has been impacted by the loss of funding for its current project. Seeing as Romero Games is “reassess[ing] the entire staffing of [its] studio,” it seems some of its workers may still be facing the possibility of unemployment, even with the studio staying open. It also seems that, although the studio isn’t currently closing, it does remain a real possibility.
The studio, founded by originalDoomdesigner John Romeroand his wife and fellow designer Brenda Romero, says it’s doing “everything in [its] power” to avoid closing, and that they are discussing next steps. While reports that other publishers have reached out to help Romero Games finish its current project are encouraging,it still sounds like the studio’s closing isn’t completely off the table just yet. The statement only says that it hasn’t officially decided to close as of now and that the studio is trying to avoid it happening.

Xbox Layoffs Have Impacted Thousands
The Microsoft Layoffs Are Likely Responsible For Romero Games Losing Funding
Romero Games' statement does not directly specify why its latest project lost funding, but it is widely believed that this is a result of thesweeping Microsoft layoffsthathave affected over 9000 of the tech giant’s employees. After all, had Romero Games' loss of funding not been tied to Microsoft’s layoffs, the studio likely would’ve explicitly said that in its post, which was meant to clear up any misinformation surrounding the project. Seeing as this aspect of the rumors wasn’t debunked, we can assume these layoffs were truly to blame.
This just goes to show that Microsoft’s staffing cuts have not only impacted the thousands of employees who were recently laid off, but also have wider ripple effects on companies working with the company. Romero Games may still be open for now, but their statement doesn’t paint a picture of a studio that is completely unaffected by these recent events either.Rare’sEverwildproject was also canceleddue to these layoffs, and it wouldn’t be surprising to learn that more projects originally funded byMicrosoftare now in danger.