Xbox’s Doom, Wolfenstein Developers Working ‘More Closely Than Ever’ Following Xbox ‘Reset’ Layoffs

Two of Bethesda’s most prominent development studios, id Software and MachineGames, are deepening their partnership following Xbox’s organizational “reset” and accompanying layoffs. The collaboration comes as both studios navigate the aftermath of significant staff reductions ordered by Xbox CEO Asha Sharma’s restructuring initiative.

id Software, creator of the legendary Doom franchise, was particularly affected by the layoffs, with approximately half the studio’s workforce exiting. Studio co-director Marty Stratton addressed the impact at a recent press event, characterizing the team’s status positively despite the substantial departures. Rather than signaling a retreat, id Software and MachineGames—developer of the Wolfenstein series and the recently successful Indiana Jones and the Great Circle—are positioning increased collaboration as a path forward.

The partnership leverages complementary strengths: id Software’s technical expertise and long-running franchises alongside MachineGames’ demonstrated ability to deliver premium single-player experiences. This strategic alignment under Bethesda’s umbrella suggests the studios may tackle projects collaboratively, potentially strengthening both teams’ output in the challenging current gaming landscape.

The news emerges amid Xbox’s broader restructuring, which has seen multiple studios and departments affected, indicating a company attempting to refocus its portfolio and development priorities.

Sources