Former id Software developers launch employee-owned studio after Microsoft layoffs

About 20 former id Software developers announced Hidden Horses, an employee-owned studio, on Nov. 11, 2026, after Microsoft laid off a reported 136 developers in July 2026. The reductions hit a studio whose name is synonymous with shooter design and engineering.

The founders said they formed Hidden Horses to keep their team together after the layoffs. The studio operates as a democratically governed, developer-owned business that puts long-term health ahead of short-term growth. Its co-founders have over 250 collective years of game development experience, which the studio cites as it prepares to create old school shooters. Andrew Willis is co-founder and executive producer.

Hidden Horses plans to launch a Kickstarter campaign to support its first game, a single-player arena shooter called Danger Pay. The campaign invites players to join the development journey from the beginning. Danger Pay draws inspiration from The Running Man, a 1987 movie, and Smash TV from 1990, and centers on a televised ultraviolent game show. Players will join the televised game show as part of the gameplay.

Willis said, “We’re creating a studio where the developers share in its success and have a commitment to it beyond just another job.” Hidden Horses also maintains a Bluesky account for followers, and the studio directed interested followers to its social media presence.

Xbox announced on July 7, 2026, that it cut 3,200 jobs, and the extent of layoffs at each team was still coming to light. The id Software reductions emerged within this broader Microsoft job-cut announcement.

More than 90 of id Software’s roughly 200 employees lost their jobs, according to anonymous sources speaking to Game Developer. The figure represented the studio slashed in half after Xbox’s job-cut announcement. Jeff Gardiner, who used to lead projects at Bethesda, said on X that 95 id Software staff lost their jobs. His count was one of multiple estimates circulating about the scale of the id Software cuts.

Scott Miller, founder of Apogee/3D Realms and an early id collaborator, said he received word that most, if not all, id Software coders lost their jobs. The claim was notable because id Software has a reputation as a pioneer of video game tech and software engineering. John Romero, who helped found id Software, posted a message to people affected by the layoffs and said the staff there had done a great job moving the legacy forward. Doom: The Dark Ages reached 3 million players during its first week, marking the biggest-ever launch for id Software.

Id Software co-director Marty Stratton said the studio is working more closely with MachineGames than ever after the layoffs. He made the remarks at a press event for Doom: The Dark Ages’ Revelations DLC and described the studio as doing great despite the cuts. Stratton said, “We’re working more closely with MachineGames than ever.”

The layoffs heavily impacted id Software’s Frankfurt arm, including numerous designers of the id-tech engine. The losses prompted fears that id-tech might be shelved, though Microsoft contradicted that idea. Id Software built Doom: The Dark Ages on id-tech 8, while MachineGames used a modified version of id-tech 7 called Motor for Indiana Jones and the Great Circle. Stratton said both teams have incredibly talented engineers.

Bethesda president Jill Braff wrote in a leaked internal email that Microsoft was shifting from studio-specific planning to a focus on its strongest franchises. The message suggested id could take on a support role assisting Bethesda games such as Fallout and Wolfenstein.