This week it became known that as part of a large-scale restructuring of the Xbox gaming division, Microsoft laid off 96 employees from the id Software office in Richardson, Texas, as well as another 40 remote workers. According to media reports, the studio may have lost approximately half of its staff.
These layoffs are part of a large-scale program by new Xbox head Asha Sharma to "reboot" Microsoft's gaming business. The company had previously announced the reduction of 1,600 employees, and by the end of the current fiscal year, the same number will lose their jobs. In addition, several Xbox gaming studios have already been closed.
John Carmack, who founded id Software in 1991 with John Romero, Tom Hall, and Adrian Carmack, posted a message on social media, admitting that he struggled to find the right words.
I'm sad, but I can't feel anger or indignation. I don't have access to financial reports, but I suspect that from Microsoft's perspective, id Software was just a business with insignificant profits.
According to the developer, modern games should not only receive critical and fan acclaim but also generate sufficient profit to continue existing. He noted that today the industry competes not only with other games but also with all ways of spending leisure time, and this competition is becoming increasingly fierce.
Carmack also urged not to automatically consider company executives incompetent. According to him, he does not know of an obvious way that would allow the studio to double the revenue of its games. He asked a number of questions to which he himself could not provide answers: would a different pricing policy help, an expansion of fan merchandise, more effective marketing, a change in game design to attract new audiences, or a reduction in development costs?
Despite the pessimistic situation, Carmack expressed hope that the story of id Software is not yet over.