I think we'll see stuff like this continue to happen over time. As a game company, having your own engine means that you have to be able to cultivate internal expertise in your tooling. Your employees will know this and could do bad things like ask for more money because they know that replacing them would significantly hurt productivity. Meanwhile, laying off your whole engine team and switching to UE5 means that you can get access to tons of low-wage contractors who know UE5. You can hire a bunch of them when you start a game project and then lay them all off when it's finished, and rinse and repeat as necessary. It lets you treat your employees as a replaceable commodity that can be scaled up and down as it makes monetary sense rather than a cohesive team of skilled artisans.
ndiddy
Microsoft, one the world's greatest monopolists, bequeaths a game engine monopoly unto Epic Games, in one the biggest corporate blunders of all time.
If they were smarter about this, they would commoditize their compliment and open source the Doom The Dark Ages engine just like John Carmack did with the Quake 3 engine.
LarsDu88
It’s painful to watch this because the recipe for success at Microsoft is so obvious. They’ve just been fumbling the ball for so many years that it’s catching up to them.
And the thing is they’re not unprofitable. Gutting their studios and technology development isn’t going to help growth, it’s going to contract the business.
Grombobulous
It's sad to watch corporate leadership try to fix problems with tactics that will only make them worse. MS bought successful studios who were successful precisely because their of unique technical and design culture. Now they plan to homogenise them into a content-creation blob that will churn out entries for existing franchises, using the same tools and approaches as the rest of the industry. Anything that was special or unique about those studios and their games will be lost, and the result will be a downward spiral of mediocrity that will cause players to lose interest even further.
chilmers
There's no real evidence in here that the IDTech team or the "coders" were specifically let go. I'm not saying it didn't happen but the article is just raging at the idea of it happening without presenting any evidence of it.
I can't help but think the industry will be better off in a few years after this Xbox "restructure." That's a lot of knowledge and talent that's no longer stuck in 14 layers of middle management hell.
eightysixfour
Remember when Satya Nadella and Bobby Kotick got up in court and told everyone how all these giant Xbox mergers would be good for the consumer and went after Lina Khan for suggesting that maybe that wasn't the case?
Who woulda thunk they were full of crap...? (besides everyone who didn't have a financial stake in the deal)
georgemcbay
I'm probably not alone but I didn't buy any of the doom or quake games for the storytelling or IP, I bought it for the engine. They were foremost a game engine company. Switching to UE5 now makes it compete on the same level as other UE5 games, and there's a lot of those already. Kiss of death for the company if you ask me.
redml
Microsoft EEE at its best: gobble up all game studios and then kill them.
Microsoft needs to be split, it should been split years ago, but now more than ever.
SurgeArrest
Asha Sharma is managing the Xbox team like a hotel. Cut costs and boost profits. It works in the short run, but this is surely no way to run innovative game studios. Hopefully spinning these talented folks out will result in gaming innovation outside of Microsoft, because the vision inside Microsoft sure looks bleak.
sinoue
Looks like Microsoft is desperate for more cash to burn on AI and making drastic decisions like this.
Sure the Xbox division wasn't doing amazing but still had $24B of revenue in 2025. For reference PlayStation made $30B that same year.
comments (10)
ndiddy
If they were smarter about this, they would commoditize their compliment and open source the Doom The Dark Ages engine just like John Carmack did with the Quake 3 engine.
LarsDu88
And the thing is they’re not unprofitable. Gutting their studios and technology development isn’t going to help growth, it’s going to contract the business.
Grombobulous
chilmers
I can't help but think the industry will be better off in a few years after this Xbox "restructure." That's a lot of knowledge and talent that's no longer stuck in 14 layers of middle management hell.
eightysixfour
Who woulda thunk they were full of crap...? (besides everyone who didn't have a financial stake in the deal)
georgemcbay
redml
Microsoft needs to be split, it should been split years ago, but now more than ever.
SurgeArrest
sinoue
Sure the Xbox division wasn't doing amazing but still had $24B of revenue in 2025. For reference PlayStation made $30B that same year.
pier25