Microsoft's ongoing layoffs have hit id Software particularly hard, eliminating 136 positions and leaving the studio at a reduced operational scale. Former employees expressed concern about the studio's ability to continue functioning effectively, with one describing scepticism about a viable path forward. The studio had multiple projects in early development stages, including a John Wick-inspired action game and a Perfect Dark title, but resource constraints now make their completion questionable.

DOOM: The Dark Ages' commercial performance appears central to the studio's challenges. Developed as a single-player experience, the game's first-day availability through Xbox Game Pass limited full-price sales revenue, a decision that the studio may now regret. Though the title released simultaneously on PlayStation and PC—offering traditional retail sales opportunities—the Game Pass strategy evidently reduced expected income. Affected staff reportedly would have welcomed the studio being sold or made independent, similar to recent decisions with other Microsoft studios, rather than being absorbed and reduced to a support-role status.