Sony-backed Bungie in hot water, Major releases including Destiny 2 expansion delayed amid layoffs

Gaming industry sees major players facing layoffs and reorganization

Bungie, the renowned Bellevue-based game developer, is undergoing a significant transformation that includes workforce reductions and delays in the release of two highly anticipated titles: Marathon and Destiny 2's upcoming expansion, The Final Shape.

Workforce reductions at Bungie trigger delays for 'The Final Shape' & 'Marathon' (Bungie)

The latter is now slated for a June 2024 launch, while the former is not expected until 2025.

The news of the layoffs, initially reported by Bloomberg, is closely tied to ongoing restructuring within Sony's PlayStation division. While the exact number of employees affected has not been officially disclosed, former Bungie staff members have taken to social media to share their experiences. It's worth noting that Sony acquired Bungie in a landmark $3.6 billion deal last year, with the intention of allowing the Destiny developer to operate as an independent unit within the company.

In response to the changes, Bungie CEO Pete Parsons expressed his sentiments, stating, "Today is a sad day at Bungie as we say goodbye to colleagues who have all made a significant impact on our studio."

These layoffs come as a significant development in the gaming industry, signifying the evolving landscape of major players in the market.

The Final Shape, an ambitious expansion for Destiny 2, is intended to provide closure to many of the franchise's most prominent storylines. Initially scheduled for release on both Sony's and Microsoft's platforms in February 2024, it has now been pushed back to June 2024.

Marathon, the beloved first-person shooter originally released on macOS in 1994, is a highly anticipated title, now delayed until 2025. It is expected to be a player-versus-player (PvP) "extraction" game. Although Bungie never made a firm commitment to a 2024 release, there were hints pointing in that direction.

These recent layoffs at Bungie are part of a broader trend within the gaming industry, where several major players have been compelled to restructure their organizations. Epic Games, for instance, cut approximately 830 jobs, or roughly 16 percent of its workforce, in September. Naughty Dog, the developer behind The Last of Us, reportedly terminated several contract positions earlier this month, while CD Projekt Red, responsible for Cyberpunk 2077, laid off about 100 employees in July. Niantic also joined the list, laying off 230 staff members and discontinuing certain games to focus on their flagship title, Pokémon Go, back in June.