Destiny developer Bungie has today announced significant cuts at the studio that have seen 220 people, or 17% of the studio’s workforce, let go.

The cuts affect every level of the company, including most of the Sony-owned studio’s executive and senior leader roles, Bungie boss Pete Parsons said in a post on Bungie.net. “Today is a difficult and painful day,” Parsons added.

Departing staff will be offered “a generous exit package” that includes severance, bonus, and health coverage, Bungie promised.

Parsons blamed the cuts on the rising costs of development, “industry shifts,” and “enduring economic conditions.” Because of this, Parsons insistsed, Bungie has had to make “substantial changes” to its cost structure and focus development efforts entirely on live service looter shooter Destiny and the upcoming Marathon.

The cuts come after what was seen as the successful launch of Destiny 2 expansion The Final Shape. Parsons acknowledged this in his post, but said they were necessary “to refocus our studio and our business with more realistic goals and viable financials.” Parsons also said the cuts were made “after exhausting all other mitigation options,” although he failed to say what they were.

The 220 layoffs come alongside the integration of an additional 155 roles, or 12% of Bungie’s workforce, into parent company Sony Interactive Entertainment over the next few quarters. Parsons said this move saves “a great deal of talent that would otherwise have been affected by the reduction in force.”

That suggests that if Sony hadn’t taken on these 155 roles, 375 staff would have lost their jobs today, and that the actual reduction in Bungie’s workforce over time will be substantially more than 17%, at around 34%.

Meanwhile, Bungie is working with PlayStation Studios to spin out one of its incubation projects, an action game set in a brand-new sci-fi universe, to form a new studio within PlayStation Studios “to continue its promising development. ”

“This will be a time of tremendous change for our studio,” Parsons said.

Parsons went on to explain how Bungie got to this point, confirming that the studio had been “running in the red” after its financial safety margins were exceeded following delays to both The Final Shape and Marathon and a rapid expansion that “stretched our talent too thin.”

Over 850 staff remain at Bungie building Destiny and Marathon, Parsons said.

Here’s the statement in full:

This morning, I’m sharing with all of you some of the most difficult changes we’ve ever had to make as a studio. Due to rising costs of development and industry shifts as well as enduring economic conditions, it has become clear that we need to make substantial changes to our cost structure and focus development efforts entirely on Destiny and Marathon. 

That means beginning today, 220 of our roles will be eliminated, representing roughly 17% of our studio’s workforce.  

These actions will affect every level of the company, including most of our executive and senior leader roles.   

Today is a difficult and painful day, especially for our departing colleagues, all of which have made important and valuable contributions to Bungie. Our goal is to support them with the utmost care and respect. For everyone affected by this job reduction, we will be offering a generous exit package, including severance, bonus and health coverage.

I realize all of this is hard news, especially following the success we have seen with The Final Shape. But as we’ve navigated the broader economic realities over the last year, and after exhausting all other mitigation options, this has become a necessary decision to refocus our studio and our business with more realistic goals and viable financials.

We are committing to two other major changes today that we believe will support our focus, leverage Sony’s strengths, and create new opportunities for Bungie talent.

First, we are deepening our integration with Sony Interactive Entertainment, working to integrate 155 of our roles, roughly 12%, into SIE over the next few quarters. SIE has worked tirelessly with us to identify roles for as many of our people as possible, enabling us together to save a great deal of talent that would otherwise have been affected by the reduction in force.   

Second, we are working with PlayStation Studios leadership to spin out one of our incubation projects – an action game set in a brand-new science-fantasy universe – to form a new studio within PlayStation Studios to continue its promising development.  

This will be a time of tremendous change for our studio.

Let’s unpack how we ended up in this position; it’s important to understand how we got here. 

For over five years, it has been our goal to ship games in three enduring, global franchises. To realize that ambition, we set up several incubation projects, each seeded with senior development leaders from our existing teams. We eventually realized that this model stretched our talent too thin, too quickly.  It also forced our studio support structures to scale to a larger level than we could realistically support, given our two primary products in development – Destiny and Marathon. 

Additionally, in 2023, our rapid expansion ran headlong into a broad economic slowdown, a sharp downturn in the games industry, our quality miss with Destiny 2: Lightfall, and the need to give both The Final Shape and Marathon the time needed to ensure both projects deliver at the quality our players expect and deserve. We were overly ambitious, our financial safety margins were subsequently exceeded, and we began running in the red.

After this new trajectory became clear, we knew we had to change our course and speed, and we did everything we could to avoid today’s outcome. Even with exhaustive efforts undertaken across our leadership and product teams to resolve our financial challenges, these steps were simply not enough.  

As a result, today we must say goodbye to incredible talent, colleagues, and friends.

This will be a challenging time at Bungie, and we’ll need to help our team navigate these changes in the weeks and months ahead. This will be a hard week, and we know that our team will need time to process, to ask questions, and to absorb this news. Today, and over the next several weeks, we will host team meetings and town halls, team breakout sessions, and private, individual sessions to ensure we are keeping our communication open and transparent. 

Bungie will continue to make great games. We still have over 850 team members building Destiny and Marathon, and we will continue to build amazing experiences that exceed our players’ expectations.   

There will be a time to talk about our goals and projects, but today is not that day. Today, our focus is on supporting our people.

In March, multiple sources told IGN that Bungie was in the midst of shifting around its creative leadership on Marathon, including removing long-time Bungie designer Christopher Barrett from the game director role. IGN learned he was being replaced by former Valorant game director Joe Ziegler, who left Riot Games for Bungie in 2022.

At the time, IGN was told that Bungie was pouring resources into getting Marathon out the door. The game’s direction had shifted somewhat under Ziegler’s new leadership, one source said, including moving away from custom player characters in favor of a selectable cast of heroes.

There were also internal fears and rumors that layoffs would immediately follow the release of The Final Shape, with one source saying “nothing adds up” and “something will need to happen to curb costs unless The Final Shape does so well to cover the gap and people can move to Marathon.”

Unfortunately, those fears have now been realized.

Bungie has found itself rocked by a number of major shake-ups in recent years that have tanked morale at the studio and left its future uncertain. Sony officially acquired the studio mid-2022, with the promise it would largely retain a semblance of freedom as an independent subsidiary. Sources told IGN that’s largely remained true, but Bungie has struggled to meet key financial targets, with Destiny 2 significantly underperforming last year.

In October, Bungie laid off roughly 100 of its then-1,200 employees amid greater cost-cutting measures that saw Marathon delayed to 2025 and employee benefits slashed, further damaging the mood internally.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.

Microsoft has revealed a new transparent Xbox controller that rekindles memories of the OG Xbox era: the Sky Cipher Special Edition. It’s available to preorder now at the Microsoft Store for $69.99, with a release date of August 13.

In a post on Xbox Wire, Daniel Ruiz, Sr. Marketing Manager, Xbox Accessories, said the Sky Cipher features a transparent blue design “complemented by metallic features and silver interior parts that shine through from inside, exuding an aura of sophistication and futuristic appeal.”

Leaning into the nostalgia for console generations gone by, Microsoft’s video promoting the new transparent controller begins with the OG Xbox bootup animation. Perhaps Microsoft plans to release a transparent console next?

Going back and taking it forward

Introducing the Sky Cipher Special Edition Xbox Wireless controller. Pre-order now: https://t.co/G9ebMwE4Kn pic.twitter.com/yUz7IpPQR8

— Xbox (@Xbox) July 31, 2024

Here’s the official blurb:

Elevate your experience and style with the Sky Cipher controller. Stay elegantly on target with Sky Blue metallic triggers and a matching D-pad surrounded by a dark blue accent. Refine your game with two-tone thumbsticks featuring Sky Blue bases and dark blue tops. Hold on to the action with rubberized, Sky Blue grips on the back case. Looking closely at the hand grips, you can see the rumble pack vibrate and react to your gameplay.

Otherwise, the Sky Cipher Special Edition is the same Xbox Series X and S wireless controller Microsoft has sold for years, and includes USB-C connectivity, a 3.5mm audio jack, and up to 40 hours of battery life.

Alongside the reveal of this controller is the announcement that the Sky Cipher introduces a new packaging design for Xbox controllers “that embodies our commitment to reducing product carbon footprint.”

Braid developer Jonathan Blow has said the recently released anniversary edition of the indie puzzle platformer has sold “horribly,” and indicated he is now struggling to employ staff full-time.

Blow, who also created The Witness, catapulted into the upper echelons of indie video game development after Braid enjoyed enormous success on Xbox Live Arcade in 2008. It’s since become known as one of the greatest indie games of all time, with a number of perfect review scores under its belt.

16 years later, in May 2024, Blow released a remaster with fully repainted artwork, new puzzles, and in-depth commentary, across PC via Steam, Nintendo Switch, PlayStation 4 and 5, Xbox One and Xbox Series X/S, Android, and iOS, with the mobile version released by Netflix to those with an active subscription. The Anniversary Edition was announced during Sony’s State of Play event in August 2020.

As surfaced by a user on ResetEra, a YouTube channel called “Blow Fan” published a compilation of commentary from Blow on Braid, Anniversary Edition’s sales performance, made during a number of livestreams in the months since launch. The picture Blow paints here is clear: Braid, Anniversary Edition has flopped.

In one stream dated June 17, Blow said Braid, Anniversary Edition had sold “horribly.” “It has sold like dogs**t compared to what we need to make for the company to survive,” he continued. “So the future is uncertain, let’s put it that way.”

Then, on July 21, Blow was asked again about sales. “No, they’ve been terrible,” he replied. “Utterly terrible.”

In another stream dated July 22, said releasing Braid, Anniversary Edition on so many platforms “made a difference, but the problem is most of those platforms are f***ing dead now.”

“Steam is easily still our biggest platform,” he continued. “There would have been something to be said for just not porting to half those platforms.

“It’s a really interesting thing that we did. We did commentary in a way that nobody’s ever done it, at a much more thorough level than anybody’s ever done it. And at some point, you just have to know that what you did was a good thing, even if the world doesn’t really acknowledge it. And this is one of those cases, I think.”

Our obsession with the concept of the “dead game” and player counts is unhealthy for the video game industry and gamers, one of the developers behind Palworld has said.

Palworld, dubbed “Pokémon with guns,” launched in early access form to record-breaking success. It is the second most-played game ever on Steam, with an incredible concurrent player count of 2,101,867 on Valve’s platform. Only battle royale PUBG is ahead of Palworld in Steam’s all-time peak concurrents chart.

Palworld’s Steam concurrents have fallen since that explosive launch earlier this year, and now usually hit a peak in the tens of thousands rather than millions. The decline has caused some to call Palworld a “dead game,” but it is far from the only game to be called that in recent years.

For example, Rocksteady’s catastrophic Suicide Squad: Kill the Justice League, whose Steam concurrents usually peak in the hundreds of players, was called a dead game upon its release. Arrowhead’s Helldivers 2, Ubisoft’s Skull & Bones, and Blizzard’s Overwatch 2 are also often called dead games. Sony’s live service hero shooter Concord has been labeled “dead on arrival” before launch because of low beta concurrents on Steam.

The “dead game” narrative is exacerbated by an industry currently pumping out more live service games than the market can perhaps support, or even wants, and by publishers who walk away from their live service games amid low player numbers. This month Capcom announced plans to move on from dinosaur-themed shooter Exoprimal just a year after launch, with Steam concurrents brutally low.

John “Bucky” Buckley, community chief at Palworld developer Pocketpair, has been a vocal critic of the “dead game” phrase, and in social media posts has called on the industry, media, and gamers to ditch the fixation on concurrents and player counts.

Bucky followed up on these posts in an interview with YouTube channel Going Indie for a video titled, ‘Dead Games Are A Good Thing, Actually.’ In it, Bucky called out publishers and developers who try to brute-force mechanics designed to keep players playing forever into games they’re not suited to, declaring it “unhealthy.”

“Just play the games you like,” Bucky said. “If you finish in a day, cool. Good job. I’m glad you enjoyed it. Play the next one.

“I don’t think it really serves anyone to push gamers to just play the same game day in, day out. There are games that you can play every single day for months on end and never burn out. League of Legends, Dota, most MMOs, but they’re designed to be like that.

“Whereas what we’re seeing now is a trend of… I won’t necessarily say who’s trying to push it, but a lot more people are trying to push gamers to play games that aren’t really designed to be played for months on end, for months on end.”

“I don’t think you need to be pushing yourself to play the same game all the time,” Bucky continued.

“It’s not healthy for us, it’s not healthy for developers, it’s not healthy for gamers, it’s not healthy for the gaming media. And it’s just not healthy for our industry, because the more we push this kind of narrative, the more very large companies are going to just say ‘gamers want more live service.’ And we’re just going to get more of these really soulless live service games that come out and then get shut down nine months later, 12 months later, because they’re not making enough money. And we all lose in that case.

“Play all the indIes you can. Spend as much money on indies as you can. Who cares if there’s only five people playing it? Just enjoy yourself. Just enjoy games. I don’t think it needs to be any more complex than that.”

But will the industry, the media, and gamers listen? The “dead game” narrative is in part fueled by the video game industry’s obsession with secrecy. Unlike Hollywood, which makes movie budgets and box office figures public, video game publishers tend not to announce video game sales and/or revenue unless they’re truly spectacular, with development budgets almost always kept a closely guarded secret. In truth, it’s almost impossible to determine whether a video game has met expectations, which is why vague publisher comments made by CEOs in investor-focused financial calls get so much attention.

This secrecy means gamers and the media have just one publicly available performance metric with which to gauge performance: Steam concurrents. Valve continues to make this stat available for the world to see, and so the world has developed a hyper-focus around it, in turn leading to an over-reliance.

In any case, there have been plenty of examples of live service video games that were prematurely consigned to the scrap heap. Ubisoft’s Rainbow Six Siege suffered a disastrous launch but went on to become one of the biggest live service games around. Hello Games’ No Man’s Sky is another redemption story, as is CD Projekt’s Cyberpunk 2077. And let’s not forget the humble origins of Fortnite, what began as a lackluster tower defense game but ended up perhaps the biggest live service of them all.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.