id founder John Carmack comments on sad fate of studio

Q: How might these layoffs affect upcoming Doom and Quake releases from id Software?

The layoffs cut id Software by about half even while Microsoft says Doom and Quake remain priorities, so those franchises are likely to keep receiving official focus but with far fewer staff and resources. John Carmack warns this reduction and id being a marginal business for Microsoft mean future Doom and Quake releases will need to sell well to justify continued support, and other non Doom projects were reportedly gutted (see "Xbox layoffs gutted DOOM studio id Software before it could make its John Wick-style game").

Q: Could reduced headcount at id impact future platform exclusivity or release timing on Xbox vs other platforms?

Yes. The article links id’s heavy layoffs to Xbox-wide restructuring and questions which studios will remain to produce games, implying reduced headcount could affect whether id can support timed or platform exclusives or keep up release schedules. Related reporting notes Microsoft is discussing limited exclusivity ("Report: Xbox exclusives being discussed internally at Microsoft") and has promised at least one console exclusive per year ("Microsoft promises to deliver at least one Xbox console exclusive game per year"), raising doubts about which studios will be available to meet those commitments.

Q: How does Game Pass subscriber decline factor into Microsoft’s decision to downsize id Software?

The article says the Game Pass subscriber decline reduces the service's profitability and can be disastrous for Xbox, weakening the subsidy that helped support first-party studios. Because Game Pass values content differently and had been carrying parts of Xbox's business, losing millions of subscribers likely made id Software look like a marginal business to Microsoft and contributed to the decision to downsize the studio.

Q: How might Microsoft’s reported reliance on Minecraft revenues influence funding or priorities for id’s projects?

If Microsoft is relying on Minecraft revenues to subsidize other studios, id’s projects could face tighter scrutiny and be funded only if they demonstrably boost revenue or fit strategic priorities, otherwise they may be deprioritized or reduced in scale. John Carmack suggests id was a marginal business for Microsoft, so without stronger sales for Doom or Quake the studio’s funding and staffing are vulnerable. (Related: Report: Minecraft profits used to fund Xbox games portfolio).

Following disastrous layoffs that significantly cut the studio's ranks, id Software founder John Carmack comments on the unfortunate fate of the studio.

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Derek Strickland

Senior Gaming Editor

Published Jul 10, 2026 7:38 AM CDT

2 minutes & 45 seconds read time

TL;DR: John Carmack laments id Software's heavy layoffs amid Xbox's broader 3,200-person cuts, questioning whether Microsoft will steward Doom and id well. He argues beloved franchises must also generate sales, notes Game Pass's subscription model complicates revenue and risks, and suspects id was marginal financially for Microsoft.

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id Software is facing major layoffs, and the once-mighty FPS developer has been downsized as part of Xbox's restructuring. Original id co-founder John Carmack shares his thoughts and commiserates with the developers who lost their jobs.

id founder John Carmack comments on sad fate of studio 1

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Microsoft is laying off 3,200 people at Xbox, and half of those cuts occurred just a few days ago. The other half, which will see 1,600 more people lose their jobs, will take place from now until June 2027. id Software was hit hard by the layoffs, with Xbox shedding half of the studio while still somehow prioritizing id's Doom and Quake franchises.

The layoffs have captured attention from old guard veterans like John Carmack, one of the original founders of id and creators of Doom. On Twitter, Carmack shared his thoughts on id's current situation, lamenting the layoffs while also calling into question whether or not Xbox is actually a good steward for id and Doom moving forward.

Read more: Report: Xbox lays off nearly half of id Software, Doom and Quake still priorities
Read more: Microsoft rejected John Carmack's plan to bring Quake 3 VR to Meta Quest
Read more: Xbox layoffs gutted DOOM studio id Software before it could make its John Wick-style game

Carmack's post is analytical and thoughtful, bringing to mind realities of the games industry--Doom can't skate by on past successes, and still has to sell enough copies and make enough money to make a difference on Xbox's books. But that's not to say that actually didn't happen--Microsoft's issues are more than just the fallout from a few underachieving titles.

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.
I'm saddened, but I can't muster anger or outrage over it. I don't have access to the books, but I suspect that Id Software was a marginal business from Microsoft's perspective. I believe the reports that Minecraft revenues have been carrying several other studios.
To continue being produced long term, games need to succeed, not just be beloved.
You can't rule out the possibility that executives are idiots, but that shouldn't be your default belief. I don't think there is any obvious path that would have doubled the revenue from Id games.

The success of Xbox's first-party games remains unclear, as does the exact measure of this success. Xbox Game Pass has an untraditional method of how it values games content due to the very nature of a subscription, and sometimes this effect is at odds with the business of the industry, which is to principally sell software. Game Pass is access to software, but at the cost of lower upfront access, leading to a kind of replacement and conversion effect that sees players subscribing to Game Pass rather than buying the games outright.

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Question #1

How might these layoffs affect upcoming Doom and Quake releases from id Software?

Question #2

Could reduced headcount at id impact future platform exclusivity or release timing on Xbox vs other platforms?

Question #3

How does Game Pass subscriber decline factor into Microsoft’s decision to downsize id Software?

Question #4

How might Microsoft’s reported reliance on Minecraft revenues influence funding or priorities for id’s projects?

Have a question not listed here? Ask below and TweakBot will answer it.

This effect is what Microsoft had originally wanted; the idea was to convert the core Xbox userbase over to Game Pass and have that become the principal method of access on these platforms. Over time, this model could become more profitable than an initial game sale, as long as people stayed subscribed of course. If Game Pass ever loses millions of subscribers, it can be disastrous for the business.