Bungie is cutting its workforce in half following the collapse of Destiny 2's player base and the failure of its new IP initiatives. The studio, once celebrated for the Halo and Destiny franchises, confirmed layoffs that affect roughly 50 percent of its staff.
The cuts stem from Destiny 2's declining engagement and the underperformance of new projects. Bungie spent years expanding beyond Destiny with minimal commercial success, stretching resources thin across multiple concurrent developments. The live-service shooter, which launched in 2017, failed to maintain the player momentum needed to sustain the studio's operational costs.
This represents a dramatic reversal for Bungie, which Sony Interactive Entertainment acquired for $3.6 billion in 2022. The acquisition assumed Destiny's franchise would continue generating revenue, but player retention cratered. Expansions like The Final Shape, while critically praised, failed to reverse the exodus. The studio's attempt to establish new franchises never gained traction.
The layoffs affect roughly 850 employees across all departments. Bungie leadership cited "changing business priorities" and the need to "focus on a sustainable future." The studio plans to shift focus back to core Destiny 2 content rather than pursuing multiple new projects simultaneously.
The move signals a broader reckoning in the games industry around live-service economics. Studios over-invested in multiplayer shooters and live games assuming steady revenue streams. Destiny 2, World of Warcraft, and similar titles face intense competition from free-to-play alternatives and evolving player preferences. When retention drops, these projects become financial anchors rather than growth engines.
Bungie's collapse also raises questions about Sony's acquisition strategy. The $3.6 billion bet on Bungie looks increasingly expensive given the studio's current trajectory. Sony now owns a skeleton crew focused on managing a aging live