The future of Destiny 2 developer Bungie hangs in the balance as rumors circulate that a full Sony takeover may be imminent. According to anonymous sources, Bungie’s forthcoming expansion, The Final Shape, needs to meet sales expectations to avoid this drastic outcome. The studio, already burdened by financial obligations, is even prepared to cut staff again if necessary. The situation at Bungie is characterized by growing divisions between rank-and-file developers and leaders, generating a pervasive sense of anxiety.
A Boardroom Battle
In theory, Bungie is currently an independent subsidiary of Sony. However, the reality appears to be different. Bungie’s board of directors comprises both Bungie representatives, including co-founder Jason Jones and CEO Pete Parsons, and Sony’s representatives, including PlayStation Studios head Hermen Hulst and Sony senior VP Eric Lempel. Despite the tiebreaker vote held by Parsons, granting Bungie a semblance of control, the sources suggest that the board structure is contingent on Bungie meeting certain financial goals.
The consequences of Bungie falling significantly short of these financial goals could be dire. Sony would then have the authority to dissolve the board and take full control of Bungie. With The Final Shape delayed until the next fiscal year and the ongoing expense of Bungie’s 2025-bound Marathon reboot, the possibility of a Sony takeover and further job losses loom heavily. The weight of expectation rests on The Final Shape’s success, and if it fails to meet expectations, more layoffs are likely on the horizon.
A Lever to Pull Again
Chief people officer Holly Barbacovi has reportedly referred to the layoffs in November as a “lever” that the company may pull again. The sources claim that the prospect of a Sony takeover initially prompted these layoffs. Beyond the workforce reductions, Bungie has implemented a studio-wide hiring freeze, reduced travel budgets, eliminated holiday bonuses, and paused or terminated benefits. These changes include annual employee compensation adjustments to meet market rates and employee donation matching. Bungie is only offering the minimum 80% studio performance bonuses as required by their contracts this year.
The cumulative impact of these measures has taken a severe toll on morale within Bungie. Employees describe the atmosphere as “soul-crushing.” Several well-liked figures with extensive experience, who have spearheaded various community initiatives, were among those laid off. Notably, Bungie general counsel Don McGowan and the co-heads of diversity, equity, and inclusion clubs, Pride@Bungie, Women@Bungie, and Accessibility@Bungie, are among the departed. Moreover, there are indications that Bungie may be shifting towards outsourcing more of its development, as employees claim to have heard discussions on the matter before and after the layoffs.
The Outsourcing Shift
Particularly alarming are reports suggesting that Bungie is attempting to reduce its reliance on in-house QA testing. Between early October and early November, over 10% of the internal QA department was laid off or fired. Former and current QA testers reveal that the department has faced increasing workloads and responsibilities, often met with growing hostility from team and company leadership. In a particularly demoralizing incident, the QA testers were allegedly referred to as “non-developers” during a meeting, further exacerbating the internal divisions.
Leadership’s Response
The report suggests that Bungie’s leadership is discouraging staff from discussing the layoffs and is resistant to suggestions from below. Accounts from employees working within the same department reveal a Q&A session following the November departures, where a department head was queried about leaders considering salary cuts to preserve jobs. The response was disheartening, as the employees were told that Bungie was “not that type of company.”
The Fate of Bungie
Sony’s acquisition of Bungie in January 2022 for a staggering $3.6 billion raised hopes that the studio would maintain its independence. Bungie’s CEO, Pete Parsons, assured the community at the time that Bungie would continue to publish and develop their games. However, the uncertain future facing Bungie and the potential for a full Sony takeover raise doubts about the promised independence. With their destiny hanging in the balance, Bungie faces a pivotal moment that will determine the path they traverse in the coming years.
The whispers of a Sony takeover have plunged Bungie into a state of uncertainty. Faced with the pressure to meet financial goals and the possibility of further layoffs, the studio’s future remains perilously uncertain. The impact on morale, the shift towards outsourcing, and the apparent resistance from leadership to discuss these concerns paint a picture of a studio on the edge. Bungie’s fate hangs in the balance, and the gaming community waits anxiously to see what lies ahead.
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