Id Software, the renowned developer behind the Doom and Quake franchises, has undergone significant layoffs, with 136 employees, over half of its workforce, being let go. This decision occurred during a period of widespread job cuts within the games industry, including a large reduction at Microsoft's Xbox division.
The cuts at id Software have fueled speculation about the studio's future. Reports initially suggested that its proprietary id-tech engine might be retired and that future Doom titles could be developed using Unreal Engine. There were also concerns that id Software could be repurposed as a support studio for the Call of Duty franchise.
However, conflicting information has since emerged. Id Software released a statement indicating that while the studio was impacted, it retains the necessary staff to continue developing its signature games and technology. The Verge reported that the studio is in the early stages of development for a new Doom game. Id's Game Director Hugo Martin stated that the studio has not been "gutted" and maintains a workforce size comparable to when it developed Doom (2016), adding that the id-tech engine remains active. Xbox has also reportedly refocused on its core franchises, including Doom and Quake.
These mixed signals have created a confusing situation, raising questions about the rationale behind drastically reducing the staff of a highly regarded developer. The discrepancy between Microsoft's actions and the statements from id Software and Xbox has led to skepticism, particularly given past instances where Xbox's public statements have diverged from its actions.
One explanation offered for these layoffs centers on the cyclical nature of large-scale game development. Modern AAA titles typically take several years to complete and require large teams, but staffing needs fluctuate across different development phases. Pre-production and post-release support may require fewer personnel compared to the intensive active development phase. Under this model, a studio might downsize after completing a project or a major expansion, like id Software's recent Doom: The Dark Ages expansion, before ramping up for the next title.
This approach suggests that id Software's reduced team may be sufficient for the initial concept and design stages of the next Doom game, which can take one to two years. By employing fewer people during this less intensive period, Microsoft would incur lower costs.
However, this strategy is not without its criticisms. Alternatives such as reassigning staff to smaller projects, developing side projects, or carefully scheduling project timelines to ensure continuous employment could mitigate mass layoffs. Furthermore, reports indicate that a significant portion of the 158 Xbox employees laid off in Texas, which included id Software personnel, were union members, suggesting that union-busting may have been a motive alongside cost-cutting.
The severe layoffs also carry hidden costs, including a detrimental impact on team morale and the loss of institutional experience. The departure of long-term employees, especially those central to developing proprietary technology like the id-tech engine, could be seen as self-sabotage, given the engine's power and optimization capabilities. Id Software's unique ability to continually reinvent the Doom franchise, a feat compared to Nintendo's approach with Super Mario, relies heavily on the accumulated experience and stability within its long-standing team. The recent layoffs have disrupted this stability, potentially affecting the studio's future creative output.