id Software Layoffs: Canceled Projects and XBOX Engine Future

Inside the canceled pitches, the surviving team, and what XBOX might do with one of its best game engines.

News by Mymunah Tasnim on  Jul 10, 2026

The recent id Software layoffs are hitting hard for a lot of people who grew up loving this studio's work, and honestly, it's one of the toughest parts of the entire round of cuts at XBOX. Reports indicate the studio lost close to half its staff, with well over a hundred employees let go.

A detailed breakdown from people connected to the studio gave a clearer picture of what the team had actually been working on and where they'd hoped to take the game before everything changed. It's a rough situation, not just for the people who lost their jobs, but for anyone who's been a fan of what this team has built over the years. The bigger question now is what comes next.

 id Software Logo on a glass wall

The question of whether the studio will keep making its own games or shift toward supporting other teams within XBOX Game Studios.

And what happens to id Tech, the engine this studio is known for? That engine has been one of the strongest tools under the XBOX umbrella, capable of powering multiple first-person shooters across different teams and even different genres. Losing focus on that kind of asset would be a real shame for the whole organization.

Before the id Software layoffs happened, the team had reportedly been floating a handful of new concepts. One was a Perfect Dark-inspired project internally called Fury. Another was an original idea built around a robot western setting. And there was also talk of a multiplayer, co-op take on Doom.

The studio's team was exploring a John Wick-style original title known as Fury, a possible new entry in the Perfect Dark series, and a cooperative multiplayer spin on Doom. At this point, it's unclear whether any of these will move forward with the smaller team that remains.

Out of everything on that list, the Perfect Dark concept stands out as the most intriguing. It's easy to imagine this team putting their own spin on a fast-paced, first-person action game, possibly even something closer to a spin-off than a full sequel.

The John Wick-inspired pitch also sounded like a strong idea on paper.

As for a multiplayer co-op Doom game, that one feels less exciting. Doom is a fantastic franchise, but a cooperative multiplayer version doesn't carry the same appeal as the other pitches. Still, these were the projects being shopped around internally in hopes of getting greenlit, and it's anyone's guess whether they're still alive in any form.

The codename Fury project reportedly came from Hugo Martin, who serves as game director and studio co-director. This was described as an original IP pitch with a sci-fi noir tone, blending influences from Louisiana and Chicago gangster culture with a modern cyberpunk aesthetic.

Perfect Dark Joanna Dark

It also included something called Gun Fu, a system mixing traditional gunplay with martial arts combat, aiming for that John Wick movie feel. Despite all that groundwork, it reportedly never received a formal greenlight. The Perfect Dark pitch is especially interesting given the franchise hasn't seen a new release since Perfect Dark Zero launched on the XBOX 360 back in 2005.

Word is the idea started gaining traction after someone pitched it during an internal presentation. Since id Software had access to other Microsoft-owned IPs that weren't actively being developed elsewhere, this made sense as a natural direction. There was reportedly even concept art already being produced for it.

Then there was Ironwood, a survival-focused robot western concept that drew comparisons to the world of Westworld.

On top of that, additional ideas were floated for Doom, including more multiplayer content, cooperative modes, and expanded DLC. One proposal involved bringing back classic weapons from earlier entries like Doom Eternal and the 2016 reboot. Interestingly, nothing seems to be in motion for Quake right now.

That's the current situation surrounding the id Software layoffs, with reports placing the number of affected employees somewhere around 130 to 135. It's hard to believe every single person impacted was simply extra staff or underperforming.

There's likely a specific target that leadership, including Asha Sharma, had to hit based on yearly budgeting tied to the new fiscal year. These kinds of cuts tend to follow a pattern where priorities get reviewed, and teams not tied to major upcoming titles or franchises end up more exposed than others. That's just a reasonable assumption based on how these situations tend to play out across the industry.

Perfect Dark Joanna looking upwards thoughtfully

Regardless of the reasoning, a lot of talented people were lost from id Software, and that's a genuine loss for the industry. Hopefully, leadership isn't shortsighted about the tools this studio has built, especially with engines like id Tech still in play. The same goes for other strong technology across XBOX Game Studios, like Playground Games' ForzaTech.

Leaning into that tech now matters more than ever.

Doubling down on these engines instead of letting them go underused could pay off significantly down the road, especially since they allow different teams to create games that genuinely stand apart in a crowded market. This entire situation surrounding the id Software layoffs remains one of the most disappointing parts of the broader wave of cuts across XBOX from a gaming standpoint.

This is a studio with a long history of delivering great titles, and there's hope that the remaining team, still estimated to be somewhere between one hundred and two hundred people, can regroup and produce something special. Only time will tell what direction they take next, but the potential is still there.

Mymunah Tasnim

Editor, NoobFeed

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