Romero Games revives shooter project with new publisher following last year’s Xbox cuts

John Romero has revealed that Romero Games has secured a new publishing deal more than a year after losing funding for its previous project in the wake of Microsoft's sweeping Xbox cuts. The studio has also begun rehiring staff, marking a significant turnaround after fears that the company could be forced to close altogether.

Speaking to VGC at Gamescom Asia, Romero reflected on the difficult period that followed the loss of funding in July 2025. At the time, the studio was working on a large-scale first-person shooter backed by Xbox, but the project was cancelled as part of wider cuts that also impacted several other studios and unannounced games. According to Romero, the team was eventually forced to reduce headcount dramatically while searching for a path forward.

Romero explained that the studio shrank from around 110 employees to just five people while it explored new opportunities. Rather than attempting to finish the original game, which had been designed around a much larger development team, Romero Games opted to create an entirely new project built using assets, technology and ideas developed during production of the cancelled shooter. That approach ultimately helped the studio secure a deal with a new publisher, although Romero declined to reveal who that publisher is.

The studio has now rehired around ten former employees, primarily team leads from the previous project. While Romero Games remains significantly smaller than it was before the cuts, Romero says the new game has been designed around a team of roughly 15 people and is progressing well.

KitGuru Says: There is still no word on when we might get to see this new shooter for ourselves, but hopefully Romero and co can keep making steady progress without fear of funding being unexpectedly pulled again.