Report / Published 2026-10-31

id Software says it now works closer with MachineGames after half its staff left

Marty Stratton told a Doom: The Dark Ages press event that id is doing great after about half the studio exited, and that the two Xbox studios now work more closely than ever.

A long blue workbench runs along a bare concrete wall in a workshop, with a second pale wooden bench standing free in front of it and tool shelves at the far right.
Conceptual editorial illustration; not a documentary photograph.

THE SHORT VERSION

  • id Software co-director Marty Stratton said the studio is doing great after about half of it exited as part of Xbox's cuts, speaking at a press event for the Doom: The Dark Ages Revelations DLC.
  • Stratton said id is working more closely with MachineGames than ever and that the effort began before the layoffs, which PC Gamer reads as a possible technology alignment around id Tech.
  • Both outlets call the idea of a co-developed Wolfenstein 3 speculation; IGN cites studio head Jerk Gustafsson saying the team is not done with Wolfenstein.

Stratton said the studio is doing great after the cuts

id Software co-director Marty Stratton was asked how the studio is doing after Xbox cut about half of its staff, and he answered at a press event for the Doom: The Dark Ages Revelations DLC. "We're doing great," Stratton said, in a quote carried by both PC Gamer and IGN. "Not to handwave the [layoffs] away … everybody knows we had about half of our studio exit as part of that." IGN reports that the question came in the wake of layoffs that hit id as part of Xbox CEO Asha Sharma's ongoing Xbox "reset".

The rest of his answer described how the studio was rebuilt rather than what was lost. "But there was a very deliberate effort to make sure that we were incredibly viable coming out of that across everything we do, across game development and [the] technology department," Stratton said, in PC Gamer's transcription. IGN's version records the same sentence and adds the word "technology" before department. Neither outlet gives a headcount for the cuts beyond Stratton's own "about half".

The two studios are working more closely than ever

The second half of Stratton's answer moved to MachineGames, the Xbox studio behind the recent Wolfenstein games and Indiana Jones and the Great Circle. "We're working more closely with MachineGames than ever," he said. "We've always had a very close partnership with them, but I think we're at the point with technology development that both teams are incredibly talented and have incredibly talented engineers." He added that the path "had started pre-[layoffs]" and that the two had kicked the work off earlier this year.

PC Gamer describes the arrangement as a deepening of ties that came as part of id's response to the layoffs, and notes that Stratton said both teams are "really, really bullish on what we have ahead". IGN frames the same quote around the studios' shared ownership: both sit under Bethesda and Xbox, and MachineGames has used id Software's id Tech engine for every one of its games. Neither report contains a statement from MachineGames itself.

The cuts landed on the Frankfurt team behind id Tech

PC Gamer reports that the id Software layoffs heavily affected the developer's Frankfurt arm, including numerous designers of the id Tech engine. That led to fears the engine was being shelved. Microsoft contradicted that reading, according to PC Gamer, though further reports left the question open. The site's Rick Lane writes that what interested him in Stratton's answer was how often it returned to technology rather than to any specific game.

The engine history explains why. PC Gamer notes that id built Doom: The Dark Ages on id Tech 8, while MachineGames used a modified version of id Tech 7, called Motor, for Indiana Jones and the Great Circle. Lane reads Stratton's mention of both teams' "incredibly talented engineers" as a sign that id may be folding MachineGames' engine programmers into id Tech's ongoing development, with both teams working on the engine together.

Neither outlet has confirmed a third Wolfenstein

PC Gamer's own summary of the story opens with the rumour rather than the quote: "MachineGames is rumoured to be working on a third Wolfenstein game." The site says Stratton's comments have led to speculation that the two developers may cooperate on that project, and adds that id has just concluded active development of Doom: The Dark Ages following the expansion's release, which leaves room in its schedule.

IGN makes the same connection but labels it as guesswork in the first person. It cites MachineGames studio head Jerk Gustafsson saying "We're not done with Wolfenstein yet", notes that Sharma has said she wants Xbox's teams to double down on their biggest franchises, and mentions that Amazon has a Wolfenstein television series in development. None of that amounts to an announcement, and neither outlet reports a title, a date or a platform.

The id cuts sit inside a wider Xbox reset

PC Gamer places the id layoffs in a longer sequence. Xbox cut 1,600 jobs in the summer, then began a second wave in September that also merged Obsidian into Bethesda and put Activision in charge of Halo. The site reports that further Xbox layoffs are planned leading up to January 2027, and that Microsoft more broadly has offered a "voluntary exit offer" to over a quarter of its workforce.

IGN ties the sequence to one executive, describing the layoffs as part of Asha Sharma's ongoing reset and noting that Sharma has publicly set faster production as a goal. That is the context in which a technology partnership between two shooter studios becomes a cost and scheduling story as much as a creative one, though neither report says the arrangement was ordered from above.

What the two reports leave open

The reports answer the question Stratton was asked and not much beyond it. There is no number for how many people left id, no date for the studio's next game, no description of what the closer work with MachineGames produces, and no comment from MachineGames or from Microsoft. Whether id Tech continues as a shared engine is still Lane's inference rather than a confirmed plan.

Two related files on this site cover the same corporate ground from other angles. Romero Games finding a new publisher follows a studio that Xbox dropped and that now runs with 16 developers instead of 110, while the Xbox Series supply constraint covers the hardware side of the same platform business. Modern Warfare 4's removed Seoul footage is a reminder that Activision, now in charge of Halo, is making its own calls about what ships.

Sources & reporting limits

  1. id Software co-director says the Doom developer is 'working more closely with MachineGames than ever' after Xbox laid off 'about half of our studio'
  2. Xbox's Doom, Wolfenstein Developers Working 'More Closely Than Ever' Following Xbox 'Reset' Layoffs
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