Bungie Planning Significant Layoffs After Destiny 2 Development Ends, Destiny 3 Not in Active Production
Original: Jason Schreier: Bungie is planning a significant layoff following the end of Destiny 2's development. Destiny 3 is NOT in active production. View original →
Overview
According to a report from journalist Jason Schreier, Bungie is planning a significant round of layoffs following the end of Destiny 2's active development. Destiny 3 is not currently in active production, though some Bungie staff are pitching and prototyping new ideas — including Destiny-related projects — none of which have been greenlit yet.
The End of Destiny 2
Bungie officially announced the end of Destiny 2's active development through its post titled "Every End is a New Beginning," published on May 21, 2026. The game launched in September 2017 and has been continuously updated for nearly nine years, becoming one of the defining examples of the live-service model in the games industry.
Layoffs and Context
Schreier's report describes the planned layoffs as "significant," with staff involved in Destiny 2's ongoing support expected to be most directly affected. This follows two previous rounds of major cuts at Bungie — in 2023 and again in 2024 — after Sony acquired the studio for $3.6 billion in 2022. The current cuts come as Destiny 2, the studio's sole major live-service product, winds down.
What Comes Next
With no successor in active development, Bungie's immediate future remains uncertain. The studio has internal pitches in progress, but leadership has not committed to any specific direction. Fans of the Destiny franchise will have to wait for official announcements before expectations can be set.
Industry Impact
The closure of Destiny 2's development cycle and the subsequent restructuring raises broader questions about the sustainability of the live-service model. Destiny 2's eight-year run — built on seasonal passes, annual expansions, and rotating content — stands as both a testament to the model's potential and a cautionary tale about its long-term human cost.
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Sony has recorded a $560 million impairment in its Q4 FY2025 results tied to its troubled Bungie acquisition. With Marathon failing to gain traction and Destiny 2 at its lowest Steam numbers ever, total Bungie-related losses for FY2025 have reached approximately $765 million.
Sony has recorded an additional $560 million impairment loss on its 2022 Bungie acquisition, as Marathon underperforms and Destiny 2 sees dramatic player declines on Steam.
Iron Galaxy announced another round of layoffs on Apr. 17, and Kotaku reports the cuts could affect up to 90 employees after the studio shipped Tony Hawk’s Pro Skater 3 + 4.
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