Xbox is in the midst of an aggressive recalibration. CEO Asha Sharma is pursuing a "reset" of the content portfolio. Compulsion Games and Double Fine have regained their independence, Ninja Theory and Undead Labs have been sold; thousands of jobs have been cut across Activision Blizzard, Bethesda, and Xbox Game Studios. We're still getting a grasp on how severely individual studios are impacted, although some appear significant.
Reportedly, id Software has lost 50% of its staff. It's a shocking development, leaving a pioneering developer – the stewards of the id Tech engine, and creators of Doom and Quake – with drastically lowered capacity. Bethesda Game Studios, id, MachineGames, and ZeniMax Online have apparently been given a mandate to refocus on Bethesda's "strongest franchises", but it's difficult to know where id goes from here.