"Romero Games is not closed, and we are doing everything in our power to ensure it does not come to that," says the developer on Bluesky. "Any suggestion otherwise is factually incorrect. Indeed, we were in the studio today to discuss next steps with the team."

These changes come at a time when we have more players, games, and gaming hours than ever before,” said Xbox head Phil Spencer in an email to staff.

Xbox Game Pass is described as the elephant in the room by some developers who view it as unsustainable or damaging.