id Software co-director says studio remains viable after Xbox layoffs, deepening ties with MachineGames

id Software’s co‑director Marty Stratton told reporters that the studio is still operating effectively after Xbox’s recent summer workforce reduction, which eliminated about fifty percent of id’s employees just before the launch of the expansion for Doom: The Dark Ages. Stratton said the company deliberately structured the cuts to preserve viability across both its game development and technology divisions.

The announcement came during a press event earlier in the week, where Stratton affirmed that the studio is “doing great” despite the reductions. He also highlighted that id Software is now working more closely with MachineGames, the studio behind the Wolfenstein series, a partnership that has existed for some time but is now being intensified in response to the staffing changes.

Background

Xbox’s “summer reset” has affected several established game studios, with id Software among the most impacted. The lay‑offs occurred roughly 24 hours before the scheduled release of the Doom: The Dark Ages expansion, prompting concerns about the studio’s capacity to continue delivering AAA titles. Veteran programmer Chris Hays, who has been with id Software for many years, previously described the cuts as “impossible” for maintaining the level of output expected from a studio of id’s stature.

Id Software has historically relied on its proprietary id Tech engine for its first‑person shooters. The reduction in staff raised questions about the sustainability of id Tech, especially as MachineGames uses a separate fork of the engine for its upcoming, as yet unnamed, third Wolfenstein game. Some observers have suggested that the two studios could combine their remaining engineering resources to mitigate the impact of the layoffs.

Stratton confirmed that the collaboration with MachineGames has been ongoing but is now at an unprecedented level. He noted that both teams possess highly skilled engineers and that the joint effort began earlier in the year, positioning the studios on a “bullish” path for future technology development.

Microsoft, the parent company of Xbox, still has roughly a quarter of its planned “reset” remaining, with additional rounds of layoffs reported for November and January. The long‑term strategy for franchises such as Doom under Microsoft’s ownership remains uncertain.

Why it matters

The layoffs at id Software affect not only the employees directly impacted but also the broader gaming community that follows the Doom franchise. The reduction of half the studio’s workforce could influence the timeline and quality of upcoming releases, including the Doom: The Dark Ages expansion and any future Doom titles.

The intensified partnership with MachineGames may help preserve the technical capabilities required for both studios’ projects, potentially stabilising development pipelines for Doom and the forthcoming Wolfenstein sequel. However, the uncertainty surrounding further layoffs in the coming months adds a layer of risk for the continuation of these high‑profile series.

Industry observers have highlighted the broader implications for Microsoft’s handling of its acquired studios, suggesting that the treatment of id Software could set a precedent for how other studios are managed during corporate restructuring.

What happens next

Microsoft is expected to continue its “reset” process, with additional layoffs slated for November and January, according to reports. Id Software and MachineGames will maintain their close collaboration on technology development, aiming to leverage shared engineering talent to support upcoming projects. The exact impact of the forthcoming layoffs on specific titles, including Doom and Wolfenstein, has not been detailed, leaving the future of these franchises dependent on how the remaining staff and joint efforts evolve.