Bungie, the video game developer known for the Destiny franchise, is reportedly planning significant layoffs. This news follows the company's confirmation that it will cease live-service content updates for Destiny 2 in June, with no immediate plans to develop Destiny 3. The studio is shifting its focus to the extraction shooter Marathon.
What happened
Bungie announced it would release its final live-service content update for Destiny 2 on June 9. Following this, recent reports indicate that the company plans a “significant” number of layoffs. The Destiny 2 development team reportedly does not have a new project lined up, and Bungie does not intend to immediately begin production on Destiny 3. Instead, the studio will prioritize its extraction shooter, Marathon, and begin incubating new projects.
How many employees affected
While reports indicate that Bungie is planning a “significant” number of layoffs, a specific figure for the number of affected employees has not been disclosed. Bungie's employee count had grown to 850 in 2024, and the studio was formerly over 1,000 employees.
Why layoffs happened
The layoffs are attributed to several factors, including declining player numbers for Destiny 2 and a disappointing recent expansion. The decision to end Destiny 2 live-service content means the development team lacks an immediate follow-up project. Additionally, Bungie's extraction shooter Marathon has experienced a soft launch with lower-than-expected player counts and sales. Sony Interactive Entertainment, which acquired Bungie in 2022, reported a $765 million impairment loss related to Bungie assets, reflecting the financial challenges.
Company background
Bungie is a video game developer best known for creating the Halo series and the Destiny franchise. Sony Interactive Entertainment acquired Bungie in 2022 for $3.6 billion as part of its strategy to expand its live-service game offerings. The studio has previously experienced layoffs, including more than 200 employees in 2024 after canceling a Destiny spin-off.
Industry impact
These layoffs and strategic shifts at Bungie highlight the challenging market for live-service games and the pressures on studios, even those acquired by major publishers like Sony. Sony has taken significant impairment losses related to its Bungie acquisition, indicating difficulties in meeting financial expectations. The industry continues to see studios re-evaluate project pipelines and workforce sizes in response to market conditions.
What's next
Bungie's immediate focus will be on Marathon, with plans to add new PvE content and improve the onboarding experience to attract more players. While staff are reportedly pitching new projects, including within the Destiny universe, none have been greenlit for full production. The studio aims to incubate its next games, but there is no guarantee that these will move forward in the current challenging market.