id Software co‑founder John Carmack voiced disappointment over Microsoft’s sweeping layoffs, questioning the company’s stewardship of the iconic brand. He warned that the cuts could dampen the spirit of the upcoming QuakeCon reunion.
Key Takeaways
- Microsoft’s restructuring results in 136 job losses at id Software.
- John Carmack publicly doubts Microsoft’s ability to protect the id brand.
- Despite the cuts, the studio’s long‑term outlook remains cautiously optimistic.
New Xbox CEO Asha Sharma announced this week that a total of 3,200 jobs will be eliminated over the next twelve months, with an immediate wave of 1,600 cuts. The move, described by insiders as a “bloodbath,” has sent shockwaves through the gaming community and raised concerns about the future of several storied studios.
Background of the Restructuring
Sharma’s plan includes not only the immediate loss of 1,600 employees but also a further 1,600 reductions spread across the next year. Studios such as Double Fine, Compulsion Games, Ninja Theory, Undead Labs, and possibly Arkane will either spin off as independent entities or be placed under new management outside Xbox. This is part of a broader overhaul affecting heavyweights like Activision, Bethesda/ZeniMax, Blizzard, King, and many other teams under the Xbox Game Studios umbrella.
What Happened at id Software
According to an official WARN notice, 136 id Software staff members were laid off—96 from the Texas headquarters and 40 remote workers. Out of the 185 employees reported to be on the roster in December 2025, only 49 remain. A former employee described the reduction as “a bloodbath,” prompting serious questions about the studio’s viability.
Founders React
John Romero, who left the company in 1996, expressed deep sorrow for those affected and praised the recent work that “showed real care, skill and respect for what id’s worlds mean to people.” He reminded everyone that “id’s history is critically important to the history of games.” Following Romero’s statement, co‑founder John Carmack took to social media, writing, “My ‘Microsoft will probably be a good steward of the brand’ statement isn’t aging well, and this is certainly going to dampen the mood of the founder reunion at QuakeCon next month.” He added, “I’m saddened, but I can’t muster anger or outrage over it.”
Industry Implications
Carmack speculated that, from Microsoft’s perspective, id Software may have been a marginal business. He questioned whether alternative pricing, broader merchandising, lower‑cost production, or different design choices could have doubled revenues. “Games need to succeed, not just be beloved,” he wrote, noting the brutal competition for players’ time and money.
Looking Ahead
Despite the grim numbers, Carmack concluded on a hopeful note: “The game isn’t over yet, and I hope the studio rallies through.” His remarks force the industry to reconsider how legacy studios are valued and whether large publishers will invest in preserving their creative heritage.
