Microsoft layoffs cut id Software from 185 to 93, sidelining Perfect Dark and more
More than half the studio was laid off while id was “toying with” multiple projects, leaving the pipeline in limbo.

Microsoft laid off more than half of id Software, reducing staff from 185 full-time employees to 93. The cuts come as id was reportedly exploring next projects including a new Perfect Dark, a John Wick-inspired noir sci-fi concept, and a Westworld-inspired survival game.
Microsoft’s layoffs just slammed id Software’s pipeline in a way investors and executives can actually model: GamesBeat reports that 92 of id Software’s 185 full-time employees were laid off, shrinking the team to 93. And this is not a story about one canceled sketch. It’s about a studio reportedly “toying with” multiple next projects at the exact moment it lost most of its capacity to make them real.
The immediate consequence, per GamesBeat, is uncertainty over whether any of those projects can move forward with a much smaller team. One laid-off worker, speaking with GamesBeat, said, “I’m not convinced there is a viable way forward,” adding, “It feels like a bunch of knee-jerk responses.” That line lands because it matches how game development timelines work: you do not casually restart production when teams are already mid-iteration, or when design, art, engineering, and production functions get hollowed out.
id Software had just finished its work on new Doom: The Dark Ages DLC, known as Revelations. With that DLC out the door, the studio was reportedly looking at what its next full-scale project would be. The concepts weren’t small, either. One was a co-op or multiplayer Doom game that would have brought back weaponry from previous Doom games, suggesting a more content-forward approach that leans on established mechanics and audience expectations.
Another concept was a new Perfect Dark game. The reason that matters is that Perfect Dark became available after Xbox’s shutdown of developer The Initiative and its cancellation of its Perfect Dark reboot. id Software reportedly saw an opening. There were also concepts for a new game codenamed Fury, which the report frames as id trying to stretch beyond Doom rather than stay strictly inside the comfort zone.
Fury’s pitch, as described, was a John Wick-inspired, noir sci-fi game with “Chicago and Louisiana gangsters.” Like John Wick, it would have mixed martial arts with gunplay. The intention, according to the report, was to make it for Project Helix, the next-gen Xbox platform. Put plainly, that is a thesis. It is also a bet that takes coordination across multiple disciplines, including animation, character combat systems, level design, and production planning tight enough to hit a platform roadmap.
There was also talk of a Westworld-inspired survival game, though the report says not much else is known about it. That “not much else” detail is a big part of the operational problem. When studios are exploring concepts, early stages may be heavily dependent on small groups iterating quickly. But as soon as something moves toward full development, the staffing needs jump. With only 93 full-time employees now remaining, the team has less room to run parallel experiments, less slack to absorb reworks, and less redundancy to cover production bottlenecks.
This is where the strategic stakes expand beyond id Software. The report says it is unclear whether any of these projects will move forward, or if id Software will become a support studio, assisting on other Xbox-linked projects such as The Elder Scrolls 6, Wolfenstein 3, Marvel’s Blade, or other titles within Xbox. For executives, that shift matters because it changes how you value a studio. A support role can reduce risk and duration, but it can also reduce creative control and revenue upside. It can also signal to internal teams that major new IP work is harder to resource during the next budgeting cycle.
It also echoes a recent pattern at Turn 10 Studios, the team behind the Forza Motorsport franchise. Last year, that studio was gutted as part of mass layoffs, and questions emerged about whether Motorsport continues or gets replaced by the more successful Forza Horizon games. In other words, this kind of staffing shock does not just pause one project. It can tip franchise strategy toward whatever is proven to convert most reliably for the least development churn.
If you are a board member, CFO, or senior operator watching this, the takeaway is brutally practical: layoffs of this scale inside a studio that was actively discussing multiple next projects create a pipeline risk that shows up later as schedule slips, concept trimming, and platform-alignment compromises. id Software’s post-Doom: The Dark Ages DLC moment was supposed to decide what comes next. Instead, the decision might be forced by capacity loss, not creative direction.
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