- Xbox has fired almost the entire software development team at id Software.
- The studio is known for its in-house id Tech engine that has powered titles like Doom Eternal.
- Xbox could be moving the developer’s franchises to Unreal Engine 5, just like it did with Halo.
The heavily rumored Xbox layoffs have finally taken place, and it’s safe to say the gaming world is shocked. The company announced it will fire over 3,000 employees, while multiple studios like Double Fine and Compulsion Games will go independent.
Even entities like Zenimax and Obsidian have felt the brunt of these layoffs, losing a sizeable portion of their development team. As it turns out, Xbox has laid off an entire department at id Software, one of the most popular studios under its care.
Why it matters: Regardless of what Xbox plans to do with id Software and its games, firing an entire software development team is still a bad business move considering their success with the id Tech engine.

Veteran game developer Scott Miller revealed on X that almost all of id Software’s coding team has been fired by Xbox in this latest round of layoffs. The Duke Nukem creator wasn’t sure if the entire software development department had been laid off, but the effect was certainly significant on the studio.
Considering how id Software develops its in-house id Tech engine, this is a surprising decision from Microsoft. The software has powered the developer’s latest games, including Doom: The Dark Ages and Doom Eternal.
With other Xbox franchises like Halo moving to Unreal Engine 5, the company may be getting rid of id Tech in favour of the Epic Game Engine. But, considering how Halo Campaign Evolved is already being criticized for the notorious UE5 stutter, this may not be a good idea.

Regardless of the company’s plans, the layoffs have certainly hit talented studios like id Software really hard. Bethesda is restructuring completely to fit the new vision of Xbox, while Obsidian has also lost 25% of its workforce to make up for the company’s losses.
Do you think Xbox is making the right decision by laying off talented software developers? Will id Software start using Unreal Engine 5 for its upcoming games? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.


