Microsoft's recent layoffs at Xbox have sparked rumors and concerns about the fate of id Software, the beloved maker of DOOM. The cuts have been brutal, with four studios divested and over a thousand jobs removed, leaving the industry wondering about the future of Xbox's remaining studios. While the rumors of id Software's demise have been greatly exaggerated, the layoffs have still been callous and brutal, with decades of expertise and tenure wiped out overnight. Despite the callousness of Microsoft's bean counters, I'm confident the studio will endure. Microsoft has no plans to shelve id Tech, the engine that powers DOOM and other id Software games. In fact, Microsoft should invest more in id Tech, not less, to avoid monopolistic price increases and to rely less on vendors. The cuts to id Software have hit the teams that develop id Tech hard, but there remains a solid stack of expertise for id Tech across id Software itself and Machine Games. id Software's headcount is now similar to what it was for DOOM (2016), and the studio has shipped DOOM: The Dark Ages Revelations, a sizeable story expansion for last year's DOOM prequel. While it's unclear what id Software will build next, Xbox CEO Asha Sharma has specifically called out DOOM and Quake as franchises to invest in. Microsoft wants to grow its most staple and recognizable IP, which at least in the near term, likely excludes "new" franchise ideas. The layoffs at Xbox reflect a challenging time in traditional gaming, with core gaming seeing a contraction due to increased costs and lack of investment in younger cohorts. Where Xbox goes from here remains to be seen, but one thing is for sure: DOOM is eternal, and it will outlive Microsoft's bad decision-making. Personally, I think Microsoft's gaming aspirations have been heavily course corrected, and the company will need to invest more in Xbox's platform and social features to find new users. What makes this particularly fascinating is the contrast between the optimism from new CEO Asha Sharma's appointment in spring and the dire atmosphere within Xbox right now. In my opinion, Microsoft's lack of investment in Xbox's platform and social features has prevented it from finding new users out of the Gen-X and Gen-Y cohorts, many of whom are starting to age out. This raises a deeper question: How can Xbox adapt to the changing gaming landscape and find new users in a competitive market? A detail that I find especially interesting is the fact that Microsoft has not shifted id Software or Machine Games to Unreal Engine, which seems to have become the default for Microsoft and many other core game makers. This suggests that Microsoft still values id Tech and believes it has a role to play in the future of gaming. If you take a step back and think about it, the cuts at Xbox and the rumors surrounding id Software highlight the challenges and uncertainties facing the gaming industry. The industry is undergoing a significant transformation, with increased costs, changing consumer preferences, and new competitors emerging. As a result, it's crucial for companies like Microsoft to make strategic investments and adapt to the changing landscape. In conclusion, while the layoffs at Xbox have been brutal, I'm confident that id Software will endure and that Microsoft will find a way to adapt to the changing gaming landscape. The future of gaming is uncertain, but one thing is for sure: DOOM is eternal, and it will outlive Microsoft's bad decision-making.
