Id Software and MachineGames Forge Closer Ties Amid Xbox Restructuring and Layoffs
October 31, 2026
id Software and MachineGames are intensifying collaboration as Xbox’s broader restructuring and layoffs at id Software reshape the creative and technical teamwork.
Marty Stratton, co-director at id Software, says the two studios are working more closely after the layoffs, with a focus on remaining viable in both game development and technology.
The article frames these developments as speculative but plausible, highlighting that both studios’ strengths and past collaborations could underpin near-term releases.
A central concern is id Tech, the studio’s engine, and how a reduced team size might affect AAA title development, though leadership argues staffing remains comparable to past Doom titles.
External context includes Amazon’s development of a Wolfenstein TV series, which could push Xbox/Bethesda to align on future Wolfenstein projects to ride cross-media momentum.
The piece notes that the Wolfenstein TV series in development could influence strategic alignment among Xbox, Bethesda, id Software, and MachineGames.
MachineGames uses a modified id-tech 7 (Motor) for Indiana Jones and the Great Circle, while id Software built Doom: The Dark Ages on id-tech 8, suggesting potential cross-pollination of engine programmers between the studios.
Industry context includes criticism of layoffs impacting creative output, while id Software officials stress a continued commitment to high-quality games.
Speculation points to possible co-development on MachineGames’ next project, potentially Wolfenstein 3, leveraging idTech and renewed collaboration.
MachineGames is reportedly working on an unannounced Wolfenstein 3 and uses a different fork of id Tech, signaling possible tech pooling to bridge gaps for future releases.
Xbox and Bethesda leadership have signaled a focus on flagship franchises, aiming for faster development cycles on major titles, with Wolfenstein and Doom highlighted as priorities.
Doom: The Dark Ages – Revelations DLC has wrapped, and the timing is framed as a precursor to deeper collaboration and potential new titles.
Summary based on 4 sources
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Sources

Kotaku • Oct 31, 2026
Doom Director Says ‘We’re Doing Great’ After Half Of id Software Was Laid Off
