Bethesda Cancels Multiple Unannounced Projects Following Microsoft Layoffs, Romero Games

Romero Games

Bethesda Softworks has canceled funding for several unannounced game projects, including one in development at Romero Games, as fallout from Microsoft’s sweeping layoffs continues to ripple across the industry.

Romero Games, an Ireland-based studio founded in 2015 by veteran developers John and Brenda Romero, was developing a new first-person shooter (FPS) title. However, in a recent post shared on social media, the team revealed that Bethesda has unexpectedly pulled out of the publishing deal, effectively halting the game's production.

The studio expressed deep disappointment in the announcement, stating that the funding withdrawal came from higher levels within Bethesda and was beyond their control. “We hit every milestone on time, received consistent praise, and passed all internal gates,” they wrote, adding that the decision was not a reflection of the project’s quality or the team's performance. They also mentioned that similar cuts have affected other studios with unannounced titles under Bethesda's wing.

While Romero Games is now reassessing its path forward, they emphasized their commitment to supporting their team, many of whom have worked together for over a decade. They’ve also asked the broader industry for help in finding opportunities for those affected.

This development follows Microsoft’s decision earlier this year to lay off approximately 9,000 employees across several divisions, including Xbox and ZeniMax (Bethesda's parent company). As per reports on LinkedIn and other platforms, numerous Bethesda staff members have been either laid off or placed at risk. According to an internal memo from Xbox boss Phil Spencer, major studios such as Raven Software and Sledgehammer Games were also impacted.

Bethesda Softworks, traditionally known for publishing blockbuster franchises like The Elder Scrolls and DOOM, appears to be undergoing a significant internal shift as Microsoft restructures its gaming arm.