id Software Starts New Game After Mass Layoffs Bloodbath

Xbox boss Asha Sharma has confirmed that id Software is working on a new game. The announcement was made in a post on Bethesda's website alongside news regarding MachineGames' upcoming Wolfenstein 3. Reported by Eurogamer, Rock Paper Shotgun and VGC.

Sharma wrote on X that "Wolfenstein 3 is officially in production at MachineGames," describing it as one of gaming's most important franchises. She added that the id Software team is already working on its next project while hyping a Slaughter Mode update for Doom: The Dark Ages Revelations due next week.

The confirmation follows sweeping job cuts at Xbox earlier this year that resulted in 96 of id Software's 136 employees being laid off. One former team member described the event as a "bloodbath." Since then, co-studio director Marty Stratton has insisted the studio is doing well and working more closely with MachineGames.

Id Software stated on X that the new project comes from its teams in Texas and Frankfurt, with game direction by Hugo Martin. The studio noted it would be some time before they are ready to share more details about the title.

The announcements came as part of Xbox's 25th anniversary celebrations. In a memo, Sharma wrote that "A small team will be able to build worlds that today demand hundreds of developers."

This news arrives amid ongoing boycott efforts relating to Microsoft's controversial involvement with the Israeli military. The company also recently moved to insist that The Elder Scrolls 6 remains unaffected by the broader business reset affecting the division.