Id Software's future under scrutiny after layoffs and Microsoft's policy
Intelligence Summary
- Recent layoffs at Id Software raise questions about the studio’s future, the idTech engine, and what it could mean for Doom.
In short
- Id Software recently lost 136 employees, representing roughly half of the team.
- Microsoft says everything is fine at Id Software, but former employees are skeptical.
- There are concerns that the idTech engine could be replaced by Unreal Engine 5, which may put the studio’s future at risk.
GAME-scanner analysis
The recent layoffs at Id Software are a shocking development for a studio known for influential franchises like Doom. The cuts are part of a broader restructuring at Microsoft, which has seen a total of 1,600 employees laid off. This has sparked speculation about the future of Id Software and the technology it uses. Microsoft has publicly stated that idTech is safe, but concerns from former employees about the impact of these layoffs are hard to ignore. The claim that the studio has been 'reduced to a support team' points to a possible shift in Id Software’s role within Microsoft’s wider gaming strategy.
What does this mean for players?
For Doom fans, the future is uncertain. The layoffs include key members of the team responsible for developing the idTech engine, which could lead to delays or even changes in how future games are made. If the engine is replaced by Unreal Engine 5, Doom’s unique style and gameplay could be affected, which is a major concern for many players.
Timeline
July 16, 2026: Microsoft announces mass layoffs, including 136 at Id Software.
July 16, 2026: Microsoft issues an official statement saying Id Software and idTech are safe despite the layoffs.
July 16, 2026: Former employees raise concerns about the studio’s future and the impact on game development.
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Sources
Tweet van @idSoftwareTweet van @idSoftwareId Software was hard hit by the Xbox "reset" this month that saw scores of developers laid off--with more retrenchments on the way--and there's a big fear that the Doom developer could be reduced to a smaller role within the gaming division. Fans of the studio are also concerned with the future of idTech , id Software's proprietary engine that has powered its games through multiple gaming generations, with it possibly being binned in favor of Unreal Engine 5.