Doom and Quake studio id Software reportedly gutted, leaving standalone capabilities in doubt and newly revealed game ideas dead

Microsoft’s Xbox restructuring has devastated id Software, the legendary studio behind the Doom and Quake franchises. A WARN notice filed in Texas reveals the company laid off 136 of its 185 employees, leaving just 49 staff members remaining—96 from the Texas office and 40 remote workers.

The impact extends beyond headcount. GamesBeat reporting reveals id Software was developing several projects now unlikely to reach completion. These include a new Perfect Dark game, a co-operative or multiplayer-focused iteration of Doom, and an original IP called Fury, described as a John Wick-inspired gun fu experience.

The timing compounds the damage: id Software had just released the Revelations expansion for Doom: The Dark Ages, demonstrating the studio was actively shipping content. One departing employee described the aftermath as reducing id Software to the size of a “support studio,” raising serious questions about the remaining team’s capacity for standalone game development.

The layoffs represent a critical loss of institutional knowledge and creative talent. As one account noted, “Collectively decades of knowledge was wiped out,” highlighting the human cost of the restructuring beyond employment statistics. This development underscores broader challenges facing Microsoft’s gaming division following its acquisition of ZeniMax Media, with id Software bearing a particularly severe blow that threatens its legacy of innovation in action gaming.

Sources