Bungie, the renowned developer behind Destiny, has announced a significant round of layoffs, impacting approximately 17% of its workforce, or around 220 employees. This development follows the recent launch of Destiny 2: The Final Shape and reflects broader industry challenges and strategic shifts within the company.

The Layoffs and Their Impact

In a blog post, Bungie executive Pete Parsons explained that the layoffs are a response to rising development costs, industry shifts, and prevailing economic conditions. “We need to make substantial changes to our cost structure and focus development efforts entirely on Destiny and Marathon,” Parsons stated. The layoffs are affecting employees at every level, including executive and senior leader positions.

Those affected by the layoffs will receive a generous package, including severance pay, a bonus, and health coverage for a period of time. Parsons emphasized that these measures are part of Bungie’s efforts to support their employees during this transition.

Deepening Integration with Sony

As part of this strategic shift, Bungie is deepening its integration with its parent company, Sony Interactive Entertainment (SIE). Approximately 12% of Bungie’s remaining workforce will transition to internal positions within SIE over the next few quarters. This move is designed to streamline operations and focus on Bungie’s core projects.

New Sci-Fi Game Shifted to PlayStation

In addition to the layoffs, Bungie announced a new sci-fi game that will no longer be developed internally. Instead, this game will be spun out to form a new studio within PlayStation. Parsons described the project as an action game set in a brand-new “science-fantasy” universe. This decision aligns with Bungie’s aim to concentrate its resources on Destiny and Marathon while leveraging PlayStation’s capabilities for other projects.

Reasons Behind the Changes

Parsons detailed the factors leading to these dramatic changes. Bungie’s initial strategy involved running multiple “incubation” projects simultaneously, each led by senior development leaders. However, this approach stretched the studio’s talent too thin and forced support structures to scale beyond sustainable levels, especially with Destiny and Marathon as primary products.

Compounding these issues, Bungie faced a “broad economic slowdown” and a “sharp downturn” in the video game industry. Additionally, Destiny 2: Lightfall did not meet Bungie’s quality standards, exacerbating financial challenges. “We were overly ambitious, our financial safety margins were subsequently exceeded, and we began running in the red,” Parsons admitted. Despite exhaustive efforts to address these challenges, the company was ultimately forced to make difficult decisions.

Looking Ahead

Following these layoffs and internal shifts, Bungie will have over 850 employees dedicated to Destiny and Marathon. Despite the upheaval, Bungie remains committed to delivering high-quality content for its flagship titles. The recent release of Destiny 2’s The Final Shape expansion has been positively received by fans, suggesting a promising future for the franchise.

Final Thoughts

Bungie’s recent layoffs and strategic shifts highlight the complexities of navigating the evolving gaming industry. While the reductions are significant, the company’s focus on its core projects and deeper integration with Sony suggest a path forward. As Bungie adapts to these changes, the gaming community will be watching closely to see how these moves impact its future projects and the beloved Destiny franchise.

Also Read: