Microsoft's Xbox division announced a restructuring that includes 3,200 total layoffs over the next year, starting with 1,600 job cuts revealed on August 3 under new CEO Asha Sharma [1, 2].
As part of this plan, id Software, the Texas-based studio known for Doom and Quake, cut 136 jobs between August 5 and 6, including 96 in Richardson, Texas, and 40 remote positions [1, 2, 3, 4]. Prior to the layoffs, id Software employed 185 people; only 49 remain after the cuts, representing over half of the studio's workforce [1, 2, 3, 4].
The layoffs came shortly after id Software released an expansion for Doom: The Dark Ages [3]. Co-founder John Carmack expressed sadness but no anger, saying he suspects id Software was a marginal business for Microsoft. "I believe the reports that Minecraft revenues have been carrying several other studios," Carmack said, noting the need for games to succeed financially in a brutal competitive market [2, 3]. He added, "My 'Microsoft will probably be a good steward of the brand' statement isn’t aging well, and this is certainly going to dampen the mood of the founder reunion at QuakeCon next month." [1]
Carmack outlined strategies Microsoft might have used to increase revenue, including different pricing, more fan content, broader marketing, and cost reduction. However, he admitted not knowing if these would have worked [4].
John Romero, also an id Software co-founder, expressed sorrow for those affected: "The team has shown real care, skill and respect for what [id's much-loved] worlds mean to people. id's history is critically important to the history of games and I hope its ongoing legacy will be preserved," he said [1].
Other Xbox studios affected by layoffs include Double Fine, Compulsion Games, Ninja Theory, Undead Labs, Activision, Bethesda/ZeniMax, Blizzard, and King. Some are exploring independence or new management outside Xbox [1].
The Xbox division plans to cut another 1,600 jobs over the next 12 months as part of its ongoing restructuring effort [1, 2].
