In the wake of the Microsoft layoffs, several studios have revealed cancelled projects, mass redundancies, and further risks of collapse. On social media, the team at Romero Games, a small studio founded in 2015, revealed that Bethesda Softworks, a firm hit by the layoffs, has canceled funding for an unannounced game.
Romero Games isn’t alone in that. The team revealed that several other studios, also working on games yet to be revealed, have had their funding pulled by Bethesda Softworks, the publishing arm of the company that exists alongside Bethesda Game Studios.
Projects Lost
Romero Games was founded in 2015 by John Romero and his wife, Brenda, in Galway, Ireland. The team was hard at work piecing together an unannounced FPS, but that title might need to be abandoned now that Bethesda Softworks has pulled out of funding the studio.
On social media, the team at Romero Games wrote:
We have some difficult news to share. Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios. This was a strategic decision made at a high level within the publisher, well above our visibility or control. We deeply wish there had been something, anything, we could have done to prevent this outcome.
This absolutely isn’t a reflection of our team’s work, performance, or the quality of the project itself. We hit every milestone on time, every time, consistently received high praise, and easily passed all our internal gates. We are incredibly proud of the work being done, and of the talented team behind it. The best we’ve worked with.
We’re currently evaluating next steps and working quickly to support our team. Many of us have worked together for more than a decade, some for over 20 years. It’s an extremely difficult day, and we’re heartbroken that it’s come to this. If you know of any opportunities or ways you can help our incredible team, please reach out. Thank you to everyone who’s offered support and kindness and encouragment during this difficult time.
Bethesda Softworks was one of the companies struck by the Microsoft layoffs that impacted 9000 employees under various subsidiaries and branches. On LinkedIn, many staff at the company reported being made redundant, while others shared that they’re at risk of being laid off.
Phil Spencer’s internal memo to staff about the widespread layoffs that heavily disturbed the Xbox team at large was obtained and circulated online. Amongst the studios impacted by this action were some of the most prominent Call of Duty studios, such as Raven Software and Sledgehammer.
We’re investigating which studios have been impacted by Bethesda’s funding changes.
Have you been impacted by this massive wave of layoffs? Let us know what you’re feeling on the Insider Gaming forum.
For more Insider Gaming coverage, check out the news that the Build a Rocket Boy team is facing mass layoffs




Instead of this close the studios that don’t deliver Arkane, Halo, Turn10, Rare, Compulsion, Undead Labs, and Coalition. Not Tango and Roundhouse but only Phil makes bad decisions.
They should try making games instead of acquiring studios and then firing everyone, and sitting on IPs they’ll never use.
Unless MS just wants to become IP and patent trolls.
MS acquires popular studios to close them in order to reduce the competition. This unprofessional move of MS must be answered by the gamers with boycott of Xbox hardware. Also, boycott windows and use Linux.
I suspect you hit the nail on the head by accident there, what better way is there to completely eliminate your competition than doing exactly that?
They’re basically bribing the owners of the studios/IPs to not become their competition. That’s probably the dream of many small studio’s owners to get bought out by Bethesda. It’s a win-win. They’ll either get the opportunity to make their game with stark funding or they’ll laugh all the way to the bank regardless. The ones that get hurt are the low tier programmers/developers.
Their plan apparently was to buy studios with known talent to make the games for them instead of building their own in-house teams. It seemed promising on the surface, it almost looked like Xbox was about to be prolific with Sony-level exclussives. But these were strictly business decisions, they didn’t understand the demands of nurturing creative relationships and teams, over-spent on acquisitions and as soon as it wasn’t paying off for them they made the cold business decision to get rid of them. They treated it like day trading, but IRL they were trading the livelihoods of thousands of people.
Don’t even play make believe. There won’t be any boycott. They made a record 100+billion last year and they’ll make more this year. Consumers don’t speak with their wallets and neither will you.
Microsoft made a record 100+ billion dollars last year and they’re the second most valuable company after NVidia. If anyone thinks there’s going to be a change in leadership or policies with that reality, you’re dreaming. And save the boycott talk. It’ll never happen on a scale that will affect their profitability.