New report offers insight into morale at id Software following ‘Xbox Reset’

Amongst the many different teams affected by Microsoft’s suite of lay-offs in 2026, id Software were one of the most impacted, with reports claiming that as much as 50% of the studio was let go during the first round of Xbox cuts back in July. Months following this pivotal moment, the studio remains in a state of instability, with developers claiming that “things are still very chaotic.”

In a report by Aftermath, the publication spoke to current id Software developers in order to gauge how the studio has been faring over the past few months following the Xbox cuts. According to one employee, “things are still very chaotic.”

Speaking rather candidly on the matter in greater detail, the developer continued: “While there has been an attempt to communicate to the studios, it is still entirely in bullshit corporate speak. I still don't believe they have a clear vision for the future. The only concrete thing they have communicated is they want higher profits, and they want it now. Aggressive goals are being set that would have been unrealistic even before the layoffs.”

This has unsurprisingly affected the energy at the studio, with the dev claiming that “to say the workers within Xbox have a dim view of the future is putting it mildly. We keep thinking morale can't sink lower but the obvious incompetence of Xbox management somehow keeps driving it down worse.”

It is worth noting that this is of course but the opinion of a single developer. That said, assuming their word to be true, similar sentiments are felt all across id Software.

The decision to slice id Software in half surprised many at the time, not only due to the fact that the team had consistently released well-regarded games, but also because of their deep level of institutional knowledge; technical knowhow (having created the excellent idTech engine) and brand awareness – being responsible for the iconic and industry defining DOOM franchise.

Given that even more cuts are expected to take place across Xbox over the coming months, it’s safe to assume that morale at id Software is unlikely to improve any time soon – even if the studio is left untouched from here on out.

KitGuru says: What do you think of Microsoft’s Xbox Reset? Does Xbox have a long-term plan in place, or are they laying the tracks down right in front of them while going full steam ahead? Let us know down below.

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