Romero Games survives funding collapse but warns this downturn is "definitely crashier" than 1983
Summary
Romero Games lost publisher funding mid-production last summer, cutting its team from 110 to 9 people
John and Brenda Romero are pressing forward with their unannounced co-op shooter on a dramatically reduced scale
The Romeros position current conditions as worse than the 1983 US game industry crash
AA mid-budget development is identified as the hardest-hit segment, squeezed between micro-teams and mega-budget titles
"We were there in the 80s for the crash, and this is definitely crashier."
01
Funding pulled mid-production - studio nearly wiped out
A major publisher dropped funding for Romero Games' unannounced shooter last summer, alongside cuts to other studios and internal projects
The studio went from 110 employees to 9, with Brenda describing the redundancy process as "the worst"
False reports of full studio closure spread rapidly after an Irish outlet published prematurely, later issuing an apology
"We were working on a game with a major publisher, and along with a number of other studios and internal projects, we lost our funding."
02
Human cost of the collapse - a decade-long team dismantled
Many team members had worked together for 10 years before the layoffs
Brenda describes experiencing survivor's guilt after leading the redundancy process
Internal communication was strained during the process due to the nature of layoffs disrupting normal team dynamics
"It was really hard because a lot of us had been working together for ten years."
03
Game survives - but scope is fundamentally changed
The co-op shooter remains in development but will no longer match its original vision
The project was just before alpha when funding was cut, leaving significant work remaining
A large volume of assets already produced means the game is larger than a 9-person team would normally deliver
John notes the team's Unreal Engine 5 experience from this project gives them a head start on execution
"It will not be what it was going to be. But we're going forward."
04
AA development is the crisis epicenter
Publishers are polarizing toward either micro-budget titles under $1M or massive tentpole investments, abandoning the AA middle ground
John acknowledges micro-teams are "where it's at right now," a position Romero Games reached involuntarily
Clair Obscur: Expedition 33 is cited as a rare AA success story in an otherwise brutal funding climate
Even strong commercial performance offers no protection - EA made layoffs at studios behind Battlefield 6 after the game performed well
"I don't understand what that's all about."
05
Industry conditions compared to - and deemed worse than - 1983
Brenda directly compares the current crisis to the US video game crash of 1983, calling today's situation more severe
Generative AI is creating internal friction, with strong push from leadership and strong pushback from teams and players
Romero Games has confirmed it is not using generative AI in its current project
The Romeros see no clear resolution on the horizon but remain committed to continuing
"This is really one of those times where I don't know."
06
Outlook - resilience through reduced ambition and refocused craft
The team's stated goal has shifted from scale to quality within realistic constraints
The Romeros point to independent creators like LocalThunk and Ed McMillen as evidence the industry will endure
John states he will not stop making games regardless of industry conditions
"Let's make the best game we can make that we're capable of making right now with this design. Let's just focus on it, and forget the hype train."
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