The gaming industry’s brutal 2025 claimed another high-profile victim when Microsoft canceled Romero Games’ secret FPS project after years of development. The studio, founded by Doom and Quake legend John Romero and industry veteran Brenda Romero, lost funding for what was reportedly called Hellslayer during the sweeping Xbox layoffs that hit in July. Over 110 developers who had been working on the game suddenly faced an uncertain future. But here’s the twist – John Romero just announced the project isn’t dead, it’s been reborn as something completely different.
The Cancellation That Shocked the Industry
Romero Games announced the devastating news on July 3, 2025, through a statement from studio director Brenda Romero. The team learned the previous night that their publisher had canceled funding for their game along with several other unannounced projects at different studios. While the statement didn’t explicitly name Microsoft, it became clear through employee social media posts and industry reporting that Xbox was behind the decision.
The timing couldn’t have been worse. According to Brenda Romero’s statement, the cancellation had nothing to do with the team’s performance or the game’s quality. The studio hit every milestone on time, consistently received high praise from publisher oversight teams, and easily passed all internal quality gates. Instead, this was a strategic decision made at the highest level of Microsoft’s gaming division as part of broader cost-cutting measures that affected approximately 4% of the company’s global workforce.
What Was Hellslayer?
John Romero first teased the project in 2022, describing it as an all-new FPS with an original IP built in Unreal Engine 5 for a major publisher. The studio assembled a team of over 110 developers with credits spanning Far Cry, Crysis, Tom Clancy’s The Division, and Watch Dogs. Together, this team had shipped over 200 titles and earned awards from BAFTA and other prestigious organizations.
While specific details about Hellslayer remain scarce due to confidentiality agreements, the scale of the project was massive. John Romero recently revealed that approximately $50 million worth of assets, prototypes, world-building, and gameplay systems had been created over years of development. That investment included everything from character models and weapon systems to entire level designs and narrative frameworks.
The Immediate Fallout
The cancellation triggered immediate chaos at Romero Games. Technical artist Leslie Stowe posted on social media that the whole studio was being let go because of the Microsoft layoffs. Irish outlet The Journal reported that 42 staff members, along with a wider group of over 100 contributors, were either laid off or left without work. Initial reports suggested the Galway-based studio might close entirely, which would have marked yet another tragic end for a studio helmed by industry legends.
However, Romero Games posted a clarification on July 7, 2025, pushing back against reports that the studio had completely shut down. While acknowledging that funding for the project had been pulled and massive staff reassessment was necessary, the statement revealed that several publishers had already reached out expressing interest in helping bring the unannounced project to life. The studio emphasized it was evaluating options and hadn’t given up.
| Timeline Event | Date | Details |
|---|---|---|
| Project Announced | 2022 | John Romero reveals new FPS IP with major publisher |
| Microsoft Layoffs Begin | July 2025 | 4% of global workforce cut, gaming division hit hard |
| Funding Canceled | July 3, 2025 | Romero Games loses publisher support for Hellslayer |
| Studio Status Update | July 7, 2025 | Confirms studio survival, multiple publisher interest |
| New Project Revealed | December 2025 | John Romero announces redesigned indie shooter |
Phoenix Rising From the Ashes
During a panel at Spain’s Salon del Videojuego de Madrid in early December 2025, John Romero delivered news that shocked attendees. Not only had Romero Games survived the cancellation of their huge game, but they were actively working on something new. The announcement received rapturous applause from the audience, many of whom had assumed the studio was finished.
Romero explained that while the original Xbox-funded project remains canceled, the studio has completely redesigned their vision into a brand new indie game. Crucially, this isn’t starting from scratch. The team is salvaging elements, assets, and systems from the $50 million worth of work they completed on Hellslayer and integrating them into a smaller-scale but potentially more innovative experience.
A New Vision Compared to Elden Ring
When describing the new project, Romero made an intriguing comparison that got fans excited. He stated he’s never played a game like it before, other than it being a shooter. The things players will do in it will be new in the same way that going through Elden Ring was a genuinely novel experience – a crazy, different world that was really cool to explore with constant “What is that?” moments of discovery.
This comparison suggests Romero is aiming for something that emphasizes exploration, environmental storytelling, and surprising mechanical depth rather than following traditional FPS conventions. The shift from AAA spectacle to indie innovation might actually liberate the team creatively, allowing them to take risks that a major publisher like Microsoft might have discouraged.
The Indie Pivot Strategy
Romero was transparent about the advantages of their unusual situation. While losing $50 million in funding and seeing their project canceled was heartbreaking, the studio now possesses an enormous library of assets, prototypes, and completed systems they can repurpose for a game with a much smaller budget and scope. They’re not starting at ground zero like most indie studios – they’re beginning with AAA-quality resources that would normally be impossible for an independent team to afford.
The new game has been confirmed as a single-player FPS with no co-op or multiplayer components. This represents a significant departure from modern shooter trends that emphasize live service elements and ongoing player engagement. Instead, Romero appears focused on delivering a complete, innovative single-player experience that prioritizes groundbreaking mechanics over monetization potential.
What This Says About the Industry
The Romero Games saga illustrates the precarious state of modern game development. Even legendary creators with proven track records, hitting every milestone, and receiving high praise from publisher oversight teams can see years of work evaporated by corporate restructuring. Microsoft’s 2025 layoffs didn’t just affect Hellslayer – they also resulted in the cancellation of Rare’s long-in-development Everwild, The Initiative’s Perfect Dark reboot, and ZeniMax Online Studios’ MMORPG codenamed Blackbird.
John Romero has spoken publicly about how indies represent the future of game development, and his studio’s experience gives weight to that perspective. The cancellation was, as he described it, energizing, liberating, and creatively refreshing despite the financial and emotional toll. It forced the team to reimagine what they could create without the constraints and expectations that come with major publisher backing.
The Path Forward
While Romero Games has declined to reveal details about funding or publishing arrangements for the new project, the studio confirmed it has secured a path forward. Whether that means they’ve found a new publisher willing to back the indie vision or are self-funding through alternative means remains unclear. What matters is that one of the industry’s most influential creators gets another chance to deliver something innovative.
The gaming community will be watching closely to see what emerges from the Hellslayer ashes. Romero’s last major FPS was the infamous Daikatana in 2000, a game that became legendary for all the wrong reasons despite its ambition. Since then, he’s focused on smaller projects like the unofficial Doom episodes SIGIL and SIGIL II, which were well-received by fans but limited in scope. This new project represents his first attempt in decades to create a large-scale, innovative shooter that could cement his legacy beyond the Doom and Quake games he helped create in the 1990s.
FAQs About John Romero’s Cancelled Xbox Shooter
What was the name of John Romero’s cancelled Xbox game?
According to recent reports, the game was called Hellslayer. It was an Unreal Engine 5 first-person shooter with an original IP that had been in development since at least 2022 with funding from Microsoft and publishing through Bethesda Softworks.
Why did Microsoft cancel funding for Romero Games’ shooter?
Microsoft canceled the project in July 2025 as part of broader Xbox division layoffs and cost-cutting measures. The decision was described as strategic and made at the highest corporate level, unrelated to the game’s quality or the development team’s performance. Romero Games had hit every milestone on time and received consistently high praise from publisher oversight.
How much money was invested in the cancelled project?
John Romero revealed that approximately $50 million worth of assets, prototypes, world-building, and gameplay systems had been created over years of development. This included everything from character models and environments to complete gameplay mechanics and narrative frameworks.
Is Romero Games still open after the cancellation?
Yes, despite initial reports suggesting complete closure, Romero Games survived the cancellation. While significant layoffs occurred affecting over 100 people associated with the project, the studio secured new funding and is now working on a completely redesigned indie shooter that salvages elements from the cancelled game.
What is John Romero working on now?
Romero is developing a brand new indie first-person shooter that he describes as unlike anything he’s played before. He compares the experience to exploring Elden Ring in terms of discovery and surprise. The game is single-player only with no multiplayer or co-op components, focusing on innovative mechanics rather than following traditional FPS conventions.
Will any of the cancelled Hellslayer content be used in the new game?
Yes, Romero confirmed that the new project incorporates many elements from Hellslayer. Rather than starting from scratch, the team is repurposing assets and systems from the $50 million worth of development work already completed, giving them a significant advantage over typical indie studios starting with limited resources.
What other Xbox games were cancelled during the same layoffs?
The Microsoft layoffs in July 2025 led to multiple cancellations including Rare’s Everwild, The Initiative’s Perfect Dark reboot, and ZeniMax Online Studios’ MMORPG codenamed Blackbird. Several other unannounced projects across various Xbox-affiliated studios were also reportedly canceled.
When will John Romero’s new shooter be released?
No release date or window has been announced. Romero Games is keeping details about the new project confidential, including information about funding sources, publishing arrangements, and development timelines. Given that the redesign was only revealed in December 2025, a release is likely years away.
Conclusion
The story of Hellslayer’s cancellation and subsequent rebirth as a mysterious indie shooter perfectly captures both the brutal realities and surprising resilience of modern game development. John Romero and his team experienced what no developer wants – years of hard work evaporated by corporate decisions completely outside their control. Yet rather than accepting defeat, they’ve transformed catastrophe into opportunity, taking $50 million worth of AAA assets and redirecting them toward something potentially more innovative and creatively fulfilling. Whether the new project succeeds remains to be seen, but the Doom co-creator has already demonstrated something valuable – that legendary developers can still find ways to survive and create even when the industry’s largest companies pull the rug out from under them. For fans who’ve waited decades for Romero to deliver another groundbreaking shooter, the wait continues. But at least now there’s hope that something genuinely special might emerge from the ashes of what Microsoft left behind.