Id Software, the developer behind the Doom and Quake franchises, has been significantly affected by Microsoft's recent Xbox business restructuring, with approximately 136 employees reportedly losing their jobs.

Despite the substantial impact, id Software co-studio director Marty Stratton asserted that the studio is "doing great." Speaking at a recent event, Stratton acknowledged the layoffs, stating, "everybody knows we had about half of our studio exit as part of that." However, he emphasized a "very deliberate effort" to ensure the studio's continued viability in both game development and its technology division. This sentiment echoes previous statements from id Software's other co-studio head, Hugo Martin, who claimed the remaining team is comparable in size to when Doom (2016) was developed, and that the id Tech engine remains strong.

These assurances contrast with comments made by longtime id Software programmer Chris Hays, who was not among those laid off. Hays described the situation as making "a game that is triple-A, that is like we've done before, with half the people. And by hard I mean impossible." He also indicated that "entire departments" and "entire disciplines" had been eliminated, particularly within the id Tech engine team, which is crucial for the studio's visually impressive games that run on modest hardware.

Stratton also revealed that id Software is now collaborating more closely than ever with MachineGames, the studio responsible for the recent Wolfenstein titles and Indiana Jones and the Great Circle. While a partnership already existed, Stratton noted that this intensified collaboration on technology development began earlier this year and that both teams are "incredibly talented" and on an "amazing path."

The future projects for id Software remain undisclosed. MachineGames, meanwhile, has indicated its intention to continue the Wolfenstein series, suggesting a potential sequel to The New Colossus could be in development.