id Software loses 136 staff as Microsoft's ROI math overrides prestige
Summary
Microsoft's Xbox restructuring cut 136 jobs at id Software, reportedly more than half its workforce, per a Texas WARN filing
Co-founder John Carmack calls id "a marginal business from Microsoft's perspective," citing Minecraft revenues subsidizing other studios
Legacy IP - Doom, Quake, Wolfenstein - offered no protection once cross-subsidy tightened inside Microsoft's 3,200-person Xbox reset
"To continue being produced long term, games need to succeed, not just be beloved"
01
More than half of id's workforce cut in one filing
Texas WARN notice: 96 on-site roles in Richardson plus 40 remote positions, 136 total
Cuts landed the same week id shipped the Revelations DLC for Doom: The Dark Ages
An id developer publicly claimed the studio has been "relegated to support studio size"
id's own statement says it retains enough staff to make "games and tech" - continued operation at reduced scope, not shutdown
02
Carmack diagnoses id as financially marginal inside portfolio ROI
"I suspect that Id Software was a marginal business from Microsoft's perspective"
Carmack references Bloomberg reporting that Minecraft revenues have been carrying several other Xbox studios
He sees no obvious path to doubling id's revenue via pricing, marketing, production cost, or audience breadth
Read-through for the portfolio: studios without independent profitability are exposed when subsidizing revenue tightens
03
Legacy IP and critical acclaim offered no financial protection
Doom, Quake, and Wolfenstein heritage did not insulate id from majority workforce reduction
Doom: The Dark Ages earned strong reviews but did not move revenue enough to change the math
Carmack retracted his earlier "Microsoft will probably be a good steward of the brand" line as "not aging well"
On buying back the Doom IP, Carmack said it is valued "at substantially more than my personal net worth" - Microsoft retains and prices the IP even after cutting the team
"You said it well, John"
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