Bungie's Layoffs and the Quest for a New Greenlit Title

In early July 2026 Bungie announced roughly 400 job cuts, linked to the shutdown of *Destiny 2*. The reduced staff continues to support *Marathon*, which still receives experimental modes, new runners, maps, variants, and gear updates for the rest of the year, pending Sony’s continued backing.

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*Destiny 2* had been Bungie’s live-service for years. Its recent shutdown removed the studio’s primary revenue, exposing an issue: despite a pipeline of incubating ideas, Bungie has not secured approval for any new project beyond *Marathon* for years. Prior pitches for a *Destiny 3* or other titles have been rejected as too risky by Sony.

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Herman Hulst, Bungie’s CEO, announced the layoffs and outlined the studio’s outlook. Bungie, creator of *Halo* and *Destiny*, operates under Sony Interactive Entertainment, which controls project approval and funding.

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• Layoffs: ~400 employees.

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• Remaining staff: several hundred developers on *Marathon* and support.

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• *Marathon* pipeline: experimental modes, new runners, map variants, and gear slated for release through 2026, assuming Sony’s backing continues.

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In the layoff notice, Herman Hulst said *Marathon* remains a valued part of Bungie’s portfolio and that the studio will keep supporting the team while pursuing incubation for future projects. He noted that discussions of specific new titles are premature but expressed optimism about upcoming creative opportunities.

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Analysts warn that any approved project will likely follow a live-service model, further marginalizing the single-player, co-op, and campaign experiences that defined Bungie’s successes with *Halo* and *Destiny*. *Marathon*’s narrow genre may limit audience growth, and a shift to battle-royale or arena shooters is seen as equally risky. Critics note that the long-time community prefers traditional PvE content, and reliance on *Marathon* alone cannot sustain the studio financially.

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Sources differ on Sony’s willingness to fund a new, non-live-service title. Bungie’s internal messaging signals encouragement for creative projects, while external commentary points to Sony’s recent indecisiveness, leaving the studio’s funding outlook uncertain.

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> “Marathon remains an important part of our portfolio, and we will continue to support the team as they build on the strong foundation established in Season 1 and 2, and as they work on incubation efforts for future projects. While it’s too early to discuss, we are encouraged by the creativity and opportunities that lie ahead.” — Herman Hulst, CEO, Bungie

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Bungie’s near-term goal is to obtain approval for a smaller-scale project that can advance without large-scale rehiring. Successful incubation could yield a green-lit title within 12-18 months, giving the studio a sustainable revenue stream beyond *Marathon* and clarifying whether Sony will continue to back Bungie as an independent developer.

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