Microsoft's recent cuts at Xbox have sparked rumors about the fate of id Software, the beloved maker of DOOM. While some claim the studio's id Tech engine is on ice and its headcount is too small to produce games, I argue that Microsoft would be miserably short-sighted to deprecate id Tech. The cuts have been brutal, wiping out decades of expertise, but Microsoft has no plans to shift id Software to Unreal Engine. The remaining id Software core team is roughly the same as it was when DOOM (2016) shipped, and Microsoft wants to grow its most staple and recognizable IP, which likely excludes new franchise ideas. While the layoffs reflect a challenging time in traditional gaming, DOOM is eternal and will outlive Microsoft's bad decision-making. Personally, I think Microsoft should invest more in id Tech, not less, as it would be fiscally irresponsible to open themselves up to monopolistic price increases from Unreal Engine. What makes this particularly fascinating is the tension between Microsoft's desire to rely less on vendors and its quarterly thinking. This raises a deeper question: how can Microsoft balance its short-term goals with its long-term vision for gaming? In my opinion, the cuts at id Software are a wake-up call for Microsoft to reevaluate its priorities and invest in its most valuable assets. From my perspective, the DOOM franchise is a cornerstone of gaming, and its preservation is essential for the industry's future. One thing that immediately stands out is the contrast between Microsoft's actions and its rhetoric about investing in gaming. What many people don't realize is that Microsoft's huge bets on artificial intelligence and data center buildouts have not delivered meaningful returns, and the layoffs reflect a shift in focus away from traditional gaming. If you take a step back and think about it, the cuts at id Software are a symptom of a broader trend in the gaming industry: the struggle to adapt to changing consumer preferences and technological advancements. This is a critical moment for Microsoft, and it must decide whether to double down on its investments in gaming or pivot to other areas. What this really suggests is that Microsoft is at a crossroads, and its decisions will shape the future of gaming. A detail that I find especially interesting is the role of Xbox CEO Asha Sharma in this saga. Her memo to staff, which emphasized the need to evolve and invest in new areas, reflects a shift in Microsoft's priorities. What the studio builds next remains to be seen, but it is clear that Microsoft is rethinking its approach to gaming. In conclusion, the cuts at id Software are a wake-up call for Microsoft to reevaluate its priorities and invest in its most valuable assets. While the rumors of id Software's demise have been greatly exaggerated, the layoffs have still been callous and brutal. Microsoft must decide whether to double down on its investments in gaming or pivot to other areas, and its decisions will shape the future of the industry. Personally, I am optimistic about the future of gaming, and I believe that Microsoft will emerge stronger from this challenging time.
