Apogee co-founder George Broussard has commented on the latest wave of Xbox layoffs, saying Microsoft not shutting the studios is simply “decent PR” for them while the studios now face new struggles.
As part of what it calls “the most significant restructure in Xbox history,” Microsoft, is laying off 3,200 staff from Xbox over the next year, with five studios being sold or spun off as independent developers – including Bethesda studio Arkane, which is still in consultation over its future. Significantly hit from this round of layoffs is reportedly Doom and Quake developer id Software, which is with former Bethesda lead Jeff Gardiner reporting that 95 developers are being let go from the studio – which is reported to have around 200 employees per its LinkedIn.
Developer of one-time Doom rival Duke Nukem 3D Broussard also commented on the id layoffs on Twitter, reporting on what he’s heard from the studio about the magnitude of these layoffs. “Tools, programming (except a couple), Quake Champions team, testing team. All gone.” Broussard reports, while another quote says “seems like all they left was leadership and art/design. I think Xbox forgot Quakecon is next month.”
I’ve seen comments like “the MS layoffs weren’t so bad”.re: id software.Reports are that 50% (95ish of 200) of the studio was laid off. Here are some quotes on other details:“Tools, programming (except a couple), Quake Champions team, testing team. All gone.”“Yeah seems…July 7, 2026
Broussard adds, “It really does sound as if id is now a support team for Bethesda/others. Rip idTech, which was amazing. Maybe Machine Games will carry it on or maybe it will be dropped for future games? But the read is that id is essentially dead. At least for the time being. Yes, the studio wasn’t closed and half still have their jobs. That’s great.”
As for the four studios Microsoft let go, Broussard says, “One view is this is great. For MS they get decent PR for being ‘good guys’. But the truth is that in at least one case (and maybe others), retaining the IP in such a case was written into the original contract when MS purchased them.”
So far, it has been confirmed that Double Fine and Compulsion are retaining their IP as part of their independence, with Undead Labs and Ninja Theory still confirmed to be working on State of Decay 3 and Senua, respectively; however, it’s not clear if the studio’s new owners will also own their franchises.
Broussard adds, “Second, these studios now are out of the MS lifeboat, on their own, and will have [a] short time to find new deals or funding and they will make it or not. Never mind they sold to MS originally to avoid this grind and be ‘safe’.”
He adds, “Yes, they have a second chance, but more layoffs may simply be deferred and outside the current umbrella of today’s layoff round, so MS doesn’t really get the bad PR of simply shutting studios down. This means continual worry by the employees and stress for mgmt.”