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id Software Claims It Can Still Build Games After Xbox's 3,200 Jobs Purge, But Dev Says That Statement "Stretches Reality"
In light of Xbox's recent layoffs impacting over 3,200 employees, id Software's optimistic statement about continuing game development is challenged by former staff who argue that critical knowledge and personnel have been lost. The layoffs have considerably weakened the id Tech engine team, prompting doubts about the studio’s ability to maintain its prior innovative standards. Reports indicate major reductions in key departments, introducing uncertainty for upcoming projects like a new DOOM entry.
MonitorConfidence: HighShort term horizonReputational risk: High
Published 15 Jul 2026, 12:20 UTC4 min read
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Summary
TL;DR
- 3,200 job cuts imposed by Microsoft Xbox, impacting multiple studios.
- Former id Software staff express serious concerns over development viability.
- Major reductions in the id Tech engine team reported.
- 90% of the studio's design team for AI and gameplay has been laid off.
- Optimism from id Software contrasts with dire realities faced by staff.
Interesting facts
- id Software's claims suggest ongoing development despite massive layoffs.
- The deepest cuts affected long-time developers, eroding institutional knowledge.
- The impact on id Tech raises questions about its future viability.