John Carmack responded to the layoffs at id Software, stating he was saddened but not angry and suggesting the studio may be a marginal business for Microsoft. A Texas WARN notice filed by Game Developer reported 96 employees laid off in Richardson and an additional 40 remote workers, amounting to roughly half of the staff, as part of Microsoft’s broader gaming reset that began with 1,600 job cuts on Monday and plans to eliminate another 1,600 during the fiscal year. Carmack, a co‑founder of id Software, posted on social media that the studio could not see an obvious path to increased revenue and questioned whether pricing, marketing, or design changes could improve its commercial performance. He also noted that Minecraft revenues appeared to be financing other Xbox studios, indicating that the studio’s survival may depend on achieving sales targets rather than fan affection alone. Microsoft has not released studio‑specific financial data, and id Software was reportedly working on new projects including a John Wick‑style original IP, a new Perfect Dark title, and a multiplayer Doom game, but no new release was ready before the recent Dark Ages DLC. Analysts say the studio’s recent titles have not achieved the sales levels of major franchises, leaving its long‑term future uncertain and raising concerns that it could be reduced to a support studio. Former id co‑founder John Romero expressed support for the affected employees and urged preservation of the studio’s legacy.