Romero Games, co-founded by John and Brenda Romero, reportedly shut down following funding cuts after Microsoft's layoffs.
The decision to shut down Romero Games reportedly came from a high level within Microsoft, affecting 42 studio members and over 100 in its broader network.
The closure of Romero Games was described as a 'big shock' to its staff, with meetings held with the publisher just a day before the announcement.
The shutting down of Romero Games has raised concerns about the impact of layoffs on creativity and the future of gaming, with some expressing disappointment and hope for the impacted staff.