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The New Path For Bungie

By Pete Parsons:
This morning, I’m sharing with all of you some of the most difficult changes we’ve ever had to make as a studio. Due to rising costs of development and industry shifts as well as enduring economic conditions, it has become clear that we need to make substantial changes to our cost structure and focus development efforts entirely on Destiny and Marathon.

668d ago Replies(2)
Sonic1881668d ago (Edited 668d ago )

You mean Sony lays off 17% of Bungie workers. Sony acquiring Bungie was a joke as of right now 😃. What a big mess

-Foxtrot668d ago

We don't really know if it was Bungie themselves since they still had independence or Sony after Bungie failed to deliver again after being given a chance.

The deal apparently going off rumoured reports was that Bungie needed to sort themselves out internally, especially the higher management which was a huge issue for the studio and it's why Sony gave Bungie an extra $1.2 Billion to keep people on.

It was also apparently said that there was a clause within the deal that said if Bungie didn't hit their promised financial goals Sony would be able to take over and push the problematic studio board / CEO's out.

There's a new rumour that says this has come into play and that they've lost their independence. Hermen Hulst has apparently taken over running the studio. Is it true? Who knows but we'll soon see.

BeHunted668d ago (Edited 668d ago )

Bungie only has Destiny. They need more than one game that constantly brings in revenue instead of letting Destiny slowly lose players every month.

I still don't think Marathon is going to be successful

RaiderNation668d ago

I doubt Hulst is "running" the studio. He's running PlayStation.

darthv72668d ago

IF he is running the studio.... Id love to see Bungie's take on Killzone. Even if its a live service game, it would be nice having KZ back.

-Foxtrot668d ago (Edited 668d ago )

@RaiderNation

Might be the same thing, he's running the studio as in PlayStation is running the studio

Or it could mean he's running temporally as they find someone else to run it.

ALSO

https://x.com/dirtyeffinhip...

Seems like it was more Bungie. The devs are p****** and rightfully so.

Cacabunga668d ago

Bungie, no matter what if it’s another gaas it will be without me..

Lightning77668d ago

Already happening here.

First, we are deepening our integration with Sony Interactive Entertainment, working to integrate 155 of our roles, roughly 12%, into SIE over the next few quarters. SIE has worked tirelessly with us to identify roles for as many of our people as possible, enabling us together to save a great deal of talent that would otherwise have been affected by the reduction in force.   

I believe a Sony take over was talked about within Bungie for about a year now. Though they're lay offs happening, some of those employees will be absorbed within other Sony Studios.

shinoff2183668d ago

@darth

Im not a huge kill zone fan but I'd rather see that then marathon. So I'd agree

Michiel1989667d ago

@foxtrot stop jumping through hoops, sony is not immune to bad decisions or layoffs.

-Foxtrot667d ago

I didn’t say they were

I’m just not an idiot who can’t see the differences in circumstances here with the deals in place

If I was to ignore that then I’d be called a hot head who’s reacting without knowing all the facts

+ Show (7) more repliesLast reply 667d ago
--Onilink--668d ago (Edited 668d ago )

Not that it justifies the layoffs, but I genuinely can’t comprehend how Bungie even had 1300 people in the first place with just 1 game generating revenue.

For context, Insomniac has 450 people and they still manage to have multiple teams working on separate projects and have a higher release frequency than most other game studios.

Even the reduced Bungie will still be practically twice as big as them.

I’ve always loved Destiny despite its flaws, but the current Bungie as a company has always felt like the epitome of inefficiency

StormSnooper668d ago

interesting take. I didn't think about it that way. Although, I don't presume to know the details of how companies may be in different economic circumstances, but on the face of it, you are absolutely correct. Now I wonder if Sony will be taking over the board as per their agreement or if they will try to mitigate the situation in some other manner. Either way, I hope Bungie's next game will be as big a hit as Destiny because I personally never got into that.

Lightning77668d ago

They got reduced to 850 staff members which is still allot of ppl but only working on one project for 10 years is pretty short sided. Considering the output that Insomniac does. Something needs to change at Bungie.

--Onilink--668d ago

@Lightning

Not even just Insomniac, since they are kind of on the opposite end of the spectrum when it comes to efficiency.

But looking at other studios, Santa Monica, Naughty Dog, Warframe Dev, Respawn, all of them have between 250 and 400+ people.

Bungie had 1300 people even after the initial round of layoffs this year, which means they started 2024 with close to 1500 people.

Its honestly crazy how bad can a studio be managed to have a headcount of 1500 people and still think you are “spreading yourself too thin” by working on 2.5 projects

Even the new numbers dont even add up to that idea, since before it was 1500 people for 3 projects and now its 850 for 2. You are just as “thinly” spread as before

Ra3030668d ago

No, no this means Sony is 1 step closer to taking over and running Bungie. Bungie still controls Bungie as of today but clearly they don't know what their doing and Sony will take it over.....this is great news!

DarXyde667d ago

It does appear that there's a bias in the reporting where it's being framed as Bungie laying off workers.

Sony owns them. I don't think they're that autonomous. I really don't know, but regardless, I'm genuinely curious to see what comes next. More AI? If so, fire for them.

TheExecutioner667d ago

I feel empathy toward narrow-minded people

OlderGamer17667d ago

No Sony did'nt stop spreading lies, BUNGIE was bought by Sony with the restiction that they would be a full third party Developer. So they toke a risk. They must develop games for all systems, theyr decision.
That backfired. .That they have to let a lot of people go is theyr fault, not Sony's fault

glennhkboy667d ago

Hasn't Bungie already gone thru a massive layoff right after the takeover?

+ Show (4) more repliesLast reply 667d ago
-Foxtrot668d ago (Edited 668d ago )

So when Sony gave them $1.2 Billion extra to make sure employees didn't leave, Bungie decides to cut jobs anyway...

What a bunch of arseholes

I bet that extra money went to the studio board over the hard workers.

porkChop668d ago

"I bet that extra money went to the studio board over the hard workers."

Let's put it this way. In less than 2 years Pete Parsons has spent over $2.7M buying vintage cars on BringATrailer. That includes a Porsche he bought for $201,000 just 3 weeks after the layoffs last October that he'd made some big sad post about. This is the same guy that, just 3 days before the layoffs, went around bragging about his expensive cars and inviting a bunch of female employees over to "look at the cars".

Conveniently, Bungie also doesn't withhold exec bonuses when doing layoffs because they "aren't that kind of company".

Fishy Fingers668d ago (Edited 668d ago )

"Bungie decides"

So we're saying Sony bought them, owns them, then handed them an extra billion dollars of additional funding only then to closed their eyes, put their fingers in their ears and don't ask how any of those funds were being allocated or used, nor do they have any control over what Bungie, a subsidiary of their company does?

wtf :D

-Foxtrot668d ago (Edited 668d ago )

The deal was they let Bungie be independent, they asked them to sort their shit out, they gave them money during this time so people wouldn't leave or get fired and then waited on financial results to see if they had turned things around on their own. They didn't. Layoffs still happened and now Sony is taking control.

It's called giving them a chance but Bungies leadership decided to spit it back in Sony's face.

Sony f****** up buying them, a stupid reaction to Microsoft buying Zenimax but now they have to deal with the mess they are in.

Fishy Fingers668d ago

Bro, if you think Sony aquired something for 3.6b, then give them a further 1.2b (nearly 5% of their net worth) only to let them operate completely independently without any saying, insight or approval you're playing the fool.

"Heres $5bil, I'm going to cross my fingers and hope for the best" :\

Sony was "in control" the day the acquisition was signed.

Babadook7667d ago (Edited 667d ago )

@Fishy

So you'd rather have Sony do what MS does? Take control and run another great company to the ground with corporate overreach?

just_looken668d ago

Top studio brass making more than those in the trenches na that never happens /s

Well regardless this is another live service fiasco

Sciurus_vulgaris668d ago

Song overpaid for Bungie, 3.7 billion seemed overly steep at the time of acquisition. I think Bungie is missing revenue targets. Employees across the game industry need increased job protection.

Demetrius668d ago

Exactly it always go to the higher ups or whatever lil name makes em feel important in their heads smh. Shhi so irritating, I remember at a job I used to work management bragged about bonuses THEY get paid with cause we doing good during busy hours, we'd be working hard while they look around yelling HEY DONT SLACK UP smh folks really lame af

+ Show (2) more repliesLast reply 667d ago
Relientk77668d ago

What a waste of money this was for Sony. Never should have bought them. There's so many better studios out there.

StormSnooper668d ago

I don't think so. Bungie is a mega hit maker in the multiplayer sphere, that no one can take from them. I think Sony needed Bungie's expertise in that department so I don't think the purchase was bad for them. Now that, according to people here, Sony has the right to fully take over Management, it will be an even better proposition for Sony(presumably).

porkChop668d ago

"Sony needed Bungie's expertise in that department"

Oh wow, look at how well that's worked out for them. While Bungie has been in charge of their MP focus they've cancelled projects, shut down studios, while serving up GAAS titles like Concord that no one asked for. Yeah that was $3.7B well spent.

StormSnooper668d ago (Edited 668d ago )

What are you talking about? Are you living in alternate reality? If you are going to blame other studios on Bungie, then the success of Helldivers goes to Bungie too. Based on that, Bungie has been incredible then.

Meanwhile, MS cancelled projects, shut down studios, while ONLY serving up GAAS and nothing else. Yeah that was $85.00B well spent.

shinoff2183668d ago

Agreed. I'd rather they went after some rpgs studios or publisher.

668d ago Replies(1)
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70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

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Jin_Sakai31d ago (Edited 31d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio30d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing30d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster9230d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit30d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing30d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster9230d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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50°

Spiders Studio, Developers of GreedFall: The Dying World, Announce Liquidation of the Company

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What does it mean? This means the company as a whole no longer exists. We'll cease our functions immediately. The planned DLC will release via Nacon, and then-- well, that's it.

We're sorry that it's come to this and would like to thank each and every one of you for your support over the years.

If you have any questions or run into issues with your games, please contact Nacon directly as we'll no longer be able to reply."

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