Bellevue, Wash.-based game developer Bungie recently announced that it will be laying off approximately 17% of its workforce, affecting 220 roles within the company. This decision comes as a result of the rising costs of development, industry shifts, and enduring economic conditions. The layoffs will impact employees at every level of the company, including most executive and senior leader roles. Additionally, Bungie will be integrating approximately 155 roles into its parent company Sony Interactive Entertainment and will cease internal development on one of its unannounced projects, an action game set in a new science-fantasy universe.
The decision to restructure and lay off employees was influenced by several factors, including a “quality miss” on last year’s unpopular Destiny 2 expansion Lightfall, efforts to maintain development on Destiny 2 and the upcoming PVP shooter Marathon, as well as the general economic slowdown of 2023. Despite the critical success of Destiny 2’s recent expansion, The Final Shape, it did not generate enough revenue to prevent the need for reorganization. As a result, Bungie will now focus its development efforts solely on Destiny and the upcoming revival of Marathon. This is not the first major reorganization for Bungie, as the company also laid off 100 employees in October, reducing its workforce to around 850 employees.
Founded in 1991, Bungie is best known for its massively-multiplayer online shooter Destiny 2 and was the original developer of the Halo series. Over the years, Bungie has experienced various ownership changes, including being purchased by Microsoft in 2000, becoming independent again in 2007, and then being acquired by Sony Interactive Entertainment in 2022. The decision to streamline development efforts and focus exclusively on Destiny and Marathon is aimed at addressing financial challenges and ensuring the long-term success of the company.
The video game industry has seen a significant number of layoffs and company shutdowns in recent months, with over 10,000 employees being let go from various companies worldwide since January. Analysts attribute this instability to factors such as a slowdown in available venture capital investment, a flooded release schedule that has led to oversaturation in the market, and the industry’s increasing focus on games as a service. These challenges have forced companies like Bungie to make difficult decisions to refocus their development efforts and ensure their sustainability in a competitive industry.
Despite the layoffs and reorganization, Bungie remains committed to delivering high-quality gaming experiences to its loyal fan base. The decision to focus on Destiny and Marathon reflects the company’s dedication to creating engaging and innovative games that resonate with players. With a rich history in developing successful franchises, Bungie is poised to overcome its current challenges and continue to push boundaries in the gaming industry. As the company adapts to changing market conditions and internal restructuring, it will strive to build a sustainable future for itself and its employees.
