Report: Xbox lays off nearly half of id Software, Doom and Quake still priorities

Q: How might Xbox’s shift to franchise-focused planning affect development resources for new or smaller id Software projects?

Shifting planning to focus on strongest franchises means resources will be redirected toward high-priority series like Doom and Quake, so new or smaller id Software projects are likely to receive fewer development resources and investment. The article says investment is being shifted to higher priority projects and that planning will center on franchise content roadmaps rather than what each independent studio develops next.

Q: What reassurances have Bethesda or Xbox given about ongoing development on announced id Software projects?

Bethesda president Jill Braff said the company is shifting to focus on its strongest franchises and deciding a content roadmap that best serves players and Bethesda as a whole. Xbox CEO Asha Sharma said no first party publicly announced games or projects are being cancelled as part of these reductions.

New reports say that id Software lost nearly half of its studio numbers in the latest round of Xbox layoffs, yet Quake and Doom remain important focuses.

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Derek Strickland

Senior Gaming Editor

Published Jul 7, 2026 4:34 PM CDT

1 minute & 45 seconds read time

TL;DR: Microsoft's Xbox is cutting nearly half of id Software's staff amid a broader layoff of 3,200 employees, but id Software will continue focusing on Doom and Quake. No announced projects are canceled, and Bethesda aims to prioritize its strongest franchises for future growth.

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Legendary Doom developer id Software is facing downsizing as Microsoft makes major restructuring moves.

Report: Xbox lays off nearly half of id Software, Doom and Quake still priorities 1

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Xbox has announced more sobering news: The games division will lay off 3,200 workers total in FY27 as part of a major strategy reset. The first round of layoffs is beginning now, and will affect a total of 1,600 people. The layoffs are affecting multiple parts of Xbox, and now there are reports of numbers of people affected from individual studios, including id Software.

Sources tell Game Developer that nearly half of id Software's staff have been let go. That's over 90 people affected, including significant cuts to quality assurance (QA). Id Software isn't being shut down, however, and Bethesda apparently has no plans to shut down any studios as part of the layoffs.

Read more: Report: Bethesda layoffs may be happening as Xbox Game Studios breaks up

It's said that the Doom and Quake franchises remain priorities for Xbox.

"To best position Bethesda for future growth, we are shifting from a planning model primarily centered on what's next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole," Bethesda president Jill Braff said in a private internal email that was acquired by IGN.

Meanwhile, the latest Doom project, a DLC for The Dark Ages called Revelations, is set to release today on all platforms.

Xbox CEO Asha Sharma said this about the cuts, noting that no announced projects have been cancelled:

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"We are also making reductions across other units, and in some cases, shifting investment to focus on higher priority projects. These changes vary in size across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. None of our first party publicly announced games or projects are being cancelled as part of these reductions."