In a surprising turn of events, Romero Games has publicly denied reports of its closure following a funding crisis linked to Microsoft. The studio, founded by industry veterans John and Brenda Romero, confirmed that while it lost funding for its unannounced first-person shooter project, it remains operational and is actively seeking new publishing partners to revive the project. The situation has left employees in a state of uncertainty, with some claiming that the entire studio was being let go.