Bungie slashes staff and halts Destiny 3 development amid $560 million quarterly loss

Bungie is implementing a significant restructuring that involves laying off a substantial number of employees and halting active development on both Destiny 2 and the unannounced Destiny 3. The move comes in the wake of a $560 million quarterly loss, which the studio attributes to the underperformance of its latest title, Marathon. According to Bloomberg, the studio does not currently have new projects lined up and has no immediate plans to commence work on the next iteration of its flagship franchise.

The publisher is consolidating its resources around Marathon, the first-person shooter that launched in March. While the game failed to meet Sony’s expectations, Bungie intends to focus on developing features and updates to drive player engagement. This strategic shift was anticipated in recent months when the studio began moving Destiny staff to the Marathon team, signalling a prioritisation of the new title over its legacy franchises.

Despite internal pitches from staff members for new projects, including further titles within the Destiny franchise, Sony has not approved any of these proposals. Consequently, the future of Destiny 3 remains uncertain, with reports suggesting the game may not happen at all. The studio currently has no solid plans for the sequel, leaving the long-term direction of the brand in question following the acquisition.

For existing players, active development on Destiny 2 has ended, but the game will remain playable. Bungie confirmed that servers will stay online, with the final live service update, titled Monument of Triumph, scheduled for release on June 9. The studio has indicated an intention to keep the game operational for years to come, aiming to maintain its player base despite the cessation of new content development.

The restructuring follows a turbulent period for Bungie since Sony acquired the studio in 2022 for $3.6 billion. Post-acquisition, Sony had previously laid off staff and delayed the release of Marathon and a Destiny 2 expansion. Concerns are mounting among fans regarding the studio’s long-term viability, drawing comparisons to the fate of Bluepoint Games, a former first-party PlayStation studio that was shuttered by Sony after failing to meet performance targets.