John Carmack, the legendary co-founder of id Software, has responded to significant layoffs affecting the studio, which reduced its workforce by approximately half this week. The reductions included 96 positions at the company's Texas headquarters and 40 remote roles, forming part of Xbox's broader restructuring initiated by new CEO Asha Sharma. Whilst expressing sadness about the outcome, Carmack withheld anger or outrage, instead offering a measured perspective on the economic realities confronting the gaming division.

Carmack characterised id Software as likely a relatively minor financial operation within Microsoft's vast portfolio, noting the difficulty in identifying a clear commercial path forward. He acknowledged reports suggesting that Minecraft's profitability supports other studios within Xbox, and he emphasised that sustained game development requires both critical acclaim and genuine commercial success. Carmack outlined various potential strategies—from pricing adjustments to marketing and design modifications to cost reduction—without asserting that any single approach would definitively have changed the outcome.