Xbox is undergoing an aggressive recalibration of its content portfolio, a shift that has hit some of the industry's most iconic developers particularly hard. CEO Asha Sharma is currently overseeing a massive restructuring that has seen thousands of jobs cut across Activision Blizzard, Bethesda, and Xbox Game Studios. Among the most startling developments is the report that id Software—the studio behind Doom and the creators of the id Tech engine—has lost 50% of its workforce.
A New Mandate for Bethesda Studios
The layoffs are part of a broader "reset" strategy. Alongside the cuts at id, the company has seen Compulsion Games and Double Fine regain their independence, while Ninja Theory and Undead Labs have been sold. Bethesda Game Studios, id, MachineGames, and ZeniMax Online have reportedly been issued a mandate to refocus their efforts exclusively on Bethesda’s strongest franchises.
The future for id Software remains unclear. While Doom, Doom Eternal, and Doom: The Dark Ages performed well, they did not reach the market-dominating heights expected by current leadership. Similarly, Quake Champions struggled to gain momentum after leaving early access in 2022, facing a difficult competitive landscape dominated by battle royale and hero shooters. It has also been seven years since the release of Rage 2.
Where Does id Software Go From Here?
Given the studio's reduced capacity, common sense points toward a support role for MachineGames. Rumors have persisted for years that a sequel to 2017's Wolfenstein 2: The New Colossus is in development, and given Amazon MGM Studios' work on a live-action Wolfenstein series, it is unlikely Xbox will want to miss the opportunity to have a game ready to coincide with the show. This aligns with Asha Sharma’s stated trans-media vision for the future of Xbox.
There is also the possibility that id’s expertise could be shifted to other major properties in the Xbox catalog. With the studio’s reputation for creating the best-feeling shotguns in the industry, there is speculation about whether their talents might be applied to established series like Gears of War or Halo. Cliff Bleszinski, designer of the original Gears trilogy, has previously expressed interest in a first-person iteration of the series—a project for which id Software would be uniquely equipped.
For now, the industry is left to grapple with the loss of half of the team at one of gaming's most pioneering studios. While Doom: The Dark Ages DLC continues to see positive reception, the structural changes at id Software mark a somber turning point for the developer responsible for some of the most influential titles in PC Gaming history.