Microsoft is keeping its core id Tech engine development team intact and maintaining id Software's headcount at historical levels, despite sweeping job cuts across its Xbox gaming division, according to a report by Windows Central on July 10, 2026.
The tech giant recently downsized its gaming workforce by divesting four studios, eliminating over 1,000 positions, and planning an additional 2,000 layoffs under a restructuring plan led by new Xbox CEO Asha Sharma.
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The extensive reductions sparked industry speculation that the proprietary id Tech engine would be shelved and that id Software would cease to operate as an independent development entity.
Engine Team Remains Active
Sources said a solid baseline of engine expertise remains active across both id Software and Machine Games, and Microsoft has no plans to force either studio to transition to Unreal Engine.
"There are dozens of people working on id Tech across multiple locations.
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Reports that there's only one person left in Texas are inaccurate," Microsoft said in an official statement to Windows Central, following online rumors that the engineering team had been completely dismantled.
Internal figures indicate that the remaining core workforce at id Software is roughly equal to the headcount that shipped the critically acclaimed reboot of DOOM in 2016.
The studio recently released DOOM: The Dark Ages Revelations, a major story expansion for its flagship first-person shooter franchise, though its next full project remains unannounced.
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While internal pitches for a Perfect Dark reboot and a Western shooter titled Ironwood remain unconfirmed, Sharma specifically identified DOOM and Quake as core intellectual properties designated for future corporate investment.
