Morale at Destiny 2 developer Bungie is reportedly at an all-time low after significant layoffs and cost-cutting measures. According to a recent IGN report, sources at the studio describe the atmosphere as "soul-crushing" and express concerns about the company being fully absorbed by Sony.
Despite being acquired by Sony for $3.6 billion in 2022, Bungie has maintained a level of independence on paper. However, the board of directors now includes PlayStation Studios head Herman Hulst, senior Sony VP Eric Lempel, Bungie CTO Luis Villegas, Bungie co-founder Jason Jones, and Bungie CEO Pete Parsons. Parsons holds a tie-breaking vote on decisions, but Bungie is obligated by Sony to meet specific financial targets.
If Bungie does not reach these targets, Sony has the legal right to dissolve the board and take full voting power of the company. This outcome appears increasingly likely after the release of Lightfall earlier this year, which was poorly received and caused the studio to miss its 2023 financial forecast by 45% and the Destiny 2 player count to hit record lows. As reported by IGN, Parsons responded by laying off 100 staff members across multiple departments, reducing morale-boosting initiatives, instituting a hiring freeze, eliminating holiday bonuses, cutting travel budgets, and ending several employee benefits. When employees inquired about leadership taking salary cuts to prevent layoffs, a department head replied that Bungie is "not that type of company."
Bungie's senior management's apparent indifference or even hostility towards the current situation reported by IGN has significantly impacted morale. More layoffs are expected if The Final Shape does not outperform Lightfall, leading to the expansion's delay from February to June in an effort to avoid this outcome.
Since its split from Activision Blizzard in 2019, Bungie has managed to maintain a high level of employee morale while establishing itself as a leader in the live-service gaming market. However, according to IGN's sources, there has been a noticeable erosion of trust between employees and management, marking the end of the "people-oriented" era at the company.
For now, Bungie is in a precarious position as employees find themselves caught in the middle of alleged poor leadership and Sony's high expectations for the Destiny studio.
Editor's P/S
As a Gen Z netizen, I am deeply concerned about the recent reports regarding the state of Bungie and the future of Destiny 2. The news of significant layoffs, cost-cutting measures, and an overall decline in morale at the studio is disheartening. Bungie has always held a special place in the hearts of gamers, and it's saddening to see the company facing such challenges.
The potential for Sony to take full control of Bungie is a significant concern. While the acquisition initially promised a level of independence, the recent developments suggest that Sony's influence is becoming more pronounced. The pressure to meet financial targets and the consequences of falling short are concerning, as they could lead to further layoffs and a loss of the creative freedom that has made Destiny 2 so successful.