Bungie Faces Significant Layoffs as Destiny 3 Plans are Scrapped

Bungie is reportedly preparing for significant layoffs in the near future, marking a turbulent chapter for the studio following its acquisition by Sony. According to a new report from Bloomberg, the developer is not actively working on Destiny 3, shifting its primary focus entirely to its extraction shooter, Marathon.

This news arrives just hours after Bungie confirmed it would be winding down support for Destiny 2 after its next major update, scheduled for release in June. The confirmation sparked immediate concern among the community, as Destiny 2 has long been Bungie’s most popular and enduring active title.

Strategic Shift to Marathon

While some fans feared the end of Destiny 2 signaled a broader collapse for Bungie, Bloomberg reports that leadership had been evaluating ways to make the game more accessible to new players. Ultimately, the studio decided to embrace Marathon, redirecting developers and critical resources away from the Destiny franchise.

Although Bungie reportedly plans to continue pitching new ideas within the Destiny universe, there is no guarantee these concepts will be greenlit for full production. The decision is driven by a challenging market environment and significant economic concerns that have impacted Sony’s live-service strategy.

Currently, Bungie does not have another game lined up for development, and there are no active plans to enter production on Destiny 3. Instead, the studio hopes to stabilize its future by increasing player counts for Marathon following its disappointing launch.

Revamping the Future of Marathon

Bungie has recently outlined a clear roadmap for the future of Marathon, aiming to address the criticisms that led to its initial struggles. Key initiatives include:

  • New PvE Content: The studio is developing player-versus-environment modes designed to appeal to players who may not prefer traditional PvP or extraction gameplay loops.
  • Improved Onboarding: An ongoing effort is underway to streamline the onboarding experience, making the game less intimidating for newcomers and reducing the barrier to entry.

As of right now, it remains to be seen how effective these changes will be. However, the intent is clear: Bungie is not throwing in the towel just yet and is attempting to pivot its identity toward a more sustainable live-service model.

The Cost of Sony’s Live-Service Gamble

The context of these layoffs and strategic pivots cannot be separated from Sony’s acquisition of Bungie in 2022. The purchase was part of PlayStation’s broader effort to expand its live-service offerings, but the results have been financially painful for the parent company.

Bungie’s influence on other PlayStation projects was initially promising. The studio consulted on The Last of Us Online, providing Naughty Dog with insights on what it would take to build and support a live-service game. However, this guidance reportedly led Naughty Dog to walk away from the project entirely, recognizing the immense difficulty of the genre.

Despite this, Sony continued to invest heavily in Bungie’s output, with mixed to poor results:

  • Destiny 2 Underperformance: The title failed to meet Sony’s initial expectations, resulting in a $204 million impairment loss recorded in 2025.
  • Marathon’s Dismal Sales: The recent failure of Marathon has had even more severe consequences, leading to a massive $765 million impairment loss for Sony.

The financial strain has already prompted Sony to demonstrate its willingness to dismantle studios that do not deliver returns. Earlier this year, Sony closed Bluepoint Games, a developer renowned for remastering classic titles, without releasing a single game as a first-party PlayStation studio.

Uncertain Future for Bungie

Fans are now hoping that Bungie avoids a similar fate. Despite the recent setbacks, the studio retains a significant amount of talent and legacy within the gaming industry. The upcoming layoffs and the lack of a confirmed Destiny 3 suggest a period of intense consolidation for Bungie, but its survival depends on whether Marathon can successfully attract and retain a large player base.

As Bungie navigates this precarious transition, the industry watches closely to see if a studio with Bungie’s pedigree can recover from the financial realities of the modern live-service market.