Bungie misrepresented its finances and far exceeded its financial capabilities when Sony acquired the studio for $3.6 billion in 2022, former employees claimed in up-to-date statement Game file report released after Wednesday’s layoffs.
Apparently, it was bad enough that at least one source described as a “well-connected former employee” went so far as to say that Bungie would face grave consequences if the acquisition didn’t go through, saying that “the alternative story is insolvency.”
Their comments paint a picture of a studio that has struggled despite the success of Destiny and Destiny 2 due to supporting too many projects and other issues. Following the Sony acquisition, Game File sources claim that Bungie has repeatedly failed to meet its financial goals, leading to the layoff of around 100 employees in November 2023.
Wednesday saw a second round of layoffs, affecting another 220 people, or 17 percent of the studio’s workforce, while another 155 were integrated elsewhere within Sony Interactive Entertainment. Bungie is also expanding one of its incubator projects to create a up-to-date studio under the PlayStation banner.
Layoffs have been predicted at Bungie for some time now. In December 2023, IGN reported that the studio believed there would be more layoffs if The Final Shape wasn’t a success. However, according to Game File’s source, even The Final Shape being a box office success couldn’t stop the layoffs. Indeed, when Destiny 2 was in retreat some seven years after its launch, The Final Shape reportedly didn’t outsell its previous expansion, Lightfall, despite its critical success.
Former Bungie employees and others in the gaming industry were vocal in the wake of the layoffs, with many blaming the studio’s leadership led by CEO Pete Parsons. Their sentiments were echoed in a report by Game File , which claimed that Bungie was “selling things it simply couldn’t deliver.” Parsons, in turn, blamed the cuts on rising development costs and “persistent economic conditions,” confirming that the studio was “running in the red” following the delays of The Final Shape and Marathon.
Bungie isn’t the only one to be hit by layoffs, as other publishers including EA, Xbox, Riot, and more have also made cuts during a tough year for the gaming industry. For now, the company will continue to focus its efforts solely on Destiny and its upcoming Marathon, which doesn’t have a release date and is currently scheduled for sometime in 2025.
Kat Bailey is IGN’s news director and also co-host of Nintendo Voice Chat. Have a tip? DM her @the_katbot.
