'Games Need to Succeed, Not Just Be Beloved, to Survive Long Term' — John Carmack Reacts to id Software Layoffs

John Carmack has responded to the major layoffs at Doom developer id Software, expressing sadness but not 'anger or outrage.'

On Wednesday, a WARN notice filed in Texas, reported by Game Developer, confirmed that 96 workers had been laid off in Richardson, Texas, home of id Software, with an additional 40 remote roles cut. Reports indicate that 50% of staff have lost their jobs.

The cuts are part of new Xbox CEO Asha Sharma's 'reset' of Microsoft's gaming business, which began with 1,600 staff losing their jobs on Monday. Another 1,600 will be let go during the rest of the current financial year. Four Xbox studios have already been shut down, with another on the way.

Carmack, who co-founded id Software in 1991 alongside John Romero, Tom Hall, and Adrian Carmack, took to social media to express his belief that the company was a 'marginal business' for Microsoft, and that he couldn't see an obvious way for it to generate more revenue from its games.

Here's the full statement:

'There's a fair bit to unpack here. Let's start with Carmack's suggestion that id Software was a 'marginal business' for Microsoft. Given Microsoft brought in $281.72 billion in revenue during its last financial year, then yes, id Software is little more than a rounding error, if you look at the studio from such a high-level perspective. I imagine most Xbox studios are the same.

Compared to some other Xbox studios, though, id Software was prolific. 2016's Doom reboot was a blast. Yes, 2019's Rage 2 struggled, but 2020's Doom Eternal, released just a year later, brought fans back onside. 2022's Quake Champions has always been a bit of an odd release, but again, last year's Doom: The Dark Ages was great fun. These Doom games didn't sell at Call of Duty levels, but they made their mark.

Then there's Carmack's line: 'I believe the reports that Minecraft revenues have been carrying several other studios.' This comes from a recent Bloomberg article on the goings-on at Xbox amid its 'reset' plan. Here's the relevant section:

Did Minecraft essentially prop up Xbox studios like id Software? If it did, that's not as surprising as it sounds. Many big entertainment companies work in much the same way, with one or two megahits helping to keep the bigger picture lights on. These massive money makers fuel risk taking, experimentation, and reboots of legacy first-person shooters. At least, they did.

Then there's perhaps the most cutting line in Carmack's statement: 'To continue being produced long term, games need to succeed, not just be beloved.' Here he's simply saying that id's recent output — let's say from 2016's Doom reboot up to this month's Dark Ages DLC — hasn't been successful. I assume Carmack equates success to revenue here. That is, he's saying that while people loved the Doom games, not enough people bought them. Ergo, layoffs in 2026.

Microsoft doesn't make sales numbers for its games public, nor does it reveal studio revenue figures, so we don't know what financial state id was in going into this year. According to GamesBeat, id was formulating new game ideas, such as a John Wick-style original IP, a new Perfect Dark game, and a multiplayer/co-op Doom game. Perhaps its biggest mistake was not having a new game ready to roll even before The Dark Ages came out. Whatever the truth, id's future is now unclear. Some even worry the legendary shooter studio could be relegated to support status.

Earlier this week, John Romero took to social media to offer affected id Software staff his support, and to call on the studio's recent legacy to be preserved.

'Doom, Quake, and Wolfenstein are not easy names to carry on, especially in today's industry,' he said. 'The last few games showed real care, skill and respect for what those worlds mean to people.'