Following extensive layoffs at id Software, rumors circulated online that Microsoft would allegedly abandon its proprietary id Tech engine in favor of Unreal Engine. However, a new report claims these reports are untrue.
In July 2026, as part of a wave of layoffs across Xbox divisions, 136 employees lost their jobs at id Software. According to former studio employees, the cuts were a real "bloodbath" and significantly affected the team responsible for developing the id Tech engine. Amidst these events, speculation arose that Microsoft might completely abandon its own technology.
However, Windows Central journalist Jez Corden reported that such fears are greatly exaggerated. According to his information, while the layoffs did affect id Tech specialists and the studio lost employees with many years of experience, rumors that almost no one is working on the engine are not true.
Corden claims that Microsoft still has a "strong roster" of id Tech specialists both at id Software itself and at MachineGames. Moreover, the company does not plan to forcibly transition these studios to Unreal Engine.
This means that id Tech will continue to be the foundation for series like DOOM, Wolfenstein, and other projects that historically use the proprietary engine.
This information is also confirmed by an official comment provided to Windows Central.
Dozens of specialists across multiple offices are working on id Tech. Reports that only one person remains in Texas are not true.