The next shooter project from Romero Games has lost funding following recent layoffs and studio closures at Microsoft.

The Galway-based studio, set up by Doom creator John Romero, released a statement earlier today on social media saying its publisher had cancelled funding for its game along with “other unannounced projects at other studios”. Romero Games said this decision was “well above our visibility or control”.

As a result, the studio is now evaluating next steps, but the team is “heartbroken” at the decision.

While the statement does not specify Microsoft was the publisher in question, it can easily be inferred following yesterday’s news. Moreover, as VGC spotted, artist Christoph Redl shared on social media: “Unfortunately, due to the recent Xbox layoffs, I’ve lost my position at Romero Games.” This confirms Microsoft’s involvement.

The project was set to be an all-new shooter based on an original IP, created in Unreal Engine 5.

The statement from Romero Games – specifically CEO and co-founder Brenda Romero, wife to John – added: “We deeply wish there had been something, anything, we could have done to prevent this outcome.”

It continued: “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.”

Romero himself shared the statement, adding: “These people are the best people I’ve ever worked with, and I’m sorry to say that our game and our studio were also affected.”

The original Doom from Romero was of course developed at id Software, now part of Zenimax Media, which is itself part of Microsoft. The link to publishing the studio’s next game is therefore clear.

Yesterday, Microsoft laid off thousands of staff from across the business, including its gaming division – it’s impacted the likes of Zenimax, King, Turn 10, and Raven Software. Additionally, Rare’s Everwild has been cancelled, along with the Perfect Dark reboot at The Initiative, and an unannounced MMORPG at Zenimax.

Zenimax Online Studios head Matt Firor announced his departure in the wake of the layoffs, while veteran developer Gregg Mayles is reportedly leaving Rare after over 35 years.