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Bloody Merger Fallout: id Software vs. Xbox - 'I Don't Get Why You're Doing This'
08.08.2026 By Paweł Kiśluk 3 min ...

Bloody Merger Fallout: id Software vs. Xbox - 'I Don't Get Why You're Doing This'

Xbox's brutal layoffs hit id Software hard. Studio veteran calls out corporate cluelessness. With AAA games now costing $350-450, can half a team deliver?

Stunning reports from the gaming industry point to a deep internal crisis. After Microsoft's acquisition of Activision Blizzard, the Redmond giant began drastic cuts that also affected the legendary Doom creator - id Software. Developers from this company make no bones about it: Xbox completely fails to understand what art in games is and what the true development process entails.

Game Title/Series id Software
Genre FPS, Doom creators
Developer id Software
Publisher Microsoft (Xbox)
Release Date Activision Blizzard merger with Microsoft: 2023
Platforms PC, Consoles
Cover
id Software

KEY FACTS AT A GLANCE

  • Xbox slashes 1600 gaming division jobs, another 1600 on chopping block
  • id Software loses massive portion of team - estimated 50% staff reduction
  • Chris Hays from id Software publicly slams Xbox's lack of industry understanding
  • Hays claims corporate quarterly-profit mindset clashes with game development realities

ANATOMY OF A DISASTER

Make no mistake: Microsoft's $69 billion Activision Blizzard acquisition triggered massive layoffs. And that's where Hays' main accusation hits hard: "They don't understand that games are art, not accounting." When managers only care about quarterly profits, they can't see the big picture. Games need time. Money. Talent. Xbox doesn't see that.

"How are we supposed to create something great without the teams who make it happen?" Hays asks rhetorically. He's got a point. When you fire entire departments - from skybox artists to infrastructure engineers - who's left to make games? And what about id Tech, the legendary Doom engine? Hays is skeptical: "We fired most of the engine team. Who maintains it now?" This isn't a drill.

The id Software example hits different. This isn't some anonymous studio - it's a legend. The team that practically invented FPS. The studio that sets trends in action games. And Xbox doesn't appreciate that. They just count money. But how much money can you make when nobody's left to create games? It's like trying to sell a car without an engine. Someone might fall for it, but not for long.

Let's be real: This isn't just an Xbox problem. It's an industry problem where games look more like another profit-driven business every day. But here with id Software, it's crystal clear. Look at AAA game prices - up to $450. And what do you get? Games that are often unfinished, rushed, because who has time to finish them when you're producing on fumes?

TECHNOLOGY AND INNOVATION

The history of id Software is the history of groundbreaking technologies. From the old Wolfenstein 3D, through Quake, to the revolutionary Doom. Each of their productions not only changed the market, but also set new technological standards. And what about id Tech? That's the engine that powered dozens of games and became a benchmark for the entire industry. Will id Software's team continue to evolve it after the cuts? Or maybe Xbox plans to replace it with one of its own tools? These are crucial questions.

It's also worth mentioning that id Software was a pioneer not only in terms of technology, but also in art. Their games were renowned for perfectionism and attention to every detail. And what about such gameplay? We all know the iconic level designs from Doom, which are still considered a model to follow. Can Xbox, which doesn't understand art, maintain this unique style? That's a big question.

THE FUTURE OF ID SOFTWARE

What next for id Software? That question is on everyone's mind. Many fear that after such drastic cuts, the studio won't be able to return to its former glory. And yet, id Software is not just Doom or Quake. It's the entire history of FPS. It's the studio that changed the face of action games. Can Xbox save this legacy? Or will they simply close the studio and take over their technology?

It's also worth looking at the situation from a market perspective. In 2026, AAA game prices range between $350 and $450. Can id Software, destroyed by cuts, release a game that maintains that level? Or maybe Xbox will decide to lower the standard? That would be a real blow to fans. And to the industry.

REFLECTIONS AND PERSPECTIVES

History shows that such restructurings rarely end well. They usually mark the end of an era, and sometimes even an entire studio. Will it be different this time? Hard to say. Xbox has vast resources, but do they also have the wisdom to use them? Or maybe they just want to destroy the competition?

Speaking of the future, it's also worth mentioning the fans. They are the ones who drive the industry. No game would succeed without them. And id Software fans are exceptionally loyal. Does Xbox realize how important fans are? Or in their opinion, can money be made only on licenses and add-ons?

What do you think?

FAQ

Who specifically criticized Xbox?

Chris Hays, lead services programmer at id Software with 16 years at the studio.

What exactly did he say?

Claimed Xbox "fundamentally doesn't understand art, games, or the gaming business model".

What Xbox actions prompted this criticism?

Layoff wave across Xbox structures, including significant reductions at id Software after Microsoft's Activision Blizzard acquisition.

What are id Software's prospects after these changes?

Hays indicates the studio lost critical departments, potentially preventing creation of high-quality games. Future looks uncertain.

Does Xbox plan further cuts to development teams?

Additional reductions aren't officially confirmed, but the atmosphere of uncertainty persists across the industry after such widespread layoffs.

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About the Author

Paweł Kiśluk

Game enthusiast, developer, and creator of kvikee.com. He has been following gaming industry trends for years, blending technology with pure entertainment.
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