Destiny 3 is not in active production as Bungie faces more layoffs after Destiny 2 winds down

Bungie is reportedly preparing for another major round of layoffs after deciding to end active development on Destiny 2. The bigger concern for fans is that Destiny 3 is not currently in active production, despite earlier rumors that the next main entry in the franchise had already entered early development.

The report says Bungie does not have another large internal project ready to absorb employees who were working on Destiny 2. That is why layoffs are now expected after the studio moves away from the game that has defined much of its business for more than a decade. The news comes shortly after Bungie confirmed that Destiny 2’s June 9 update will be its final major content drop.

Bungie may pitch more Destiny projects, but there is no guarantee they will become full games

Destiny is not being fully abandoned. Bungie still plans to pitch new projects, including ideas tied to the Destiny universe. The studio has also said it will begin “incubating” projects, but that language usually means early exploration rather than full production. In the current market, there is no certainty that any of those ideas will become released games.

For now, Bungie’s main active work appears to be Marathon, its new extraction shooter. The game was received well by critics, but it has not yet built a large enough audience to clearly replace Destiny 2 as the studio’s main pillar. That leaves Bungie in a difficult position. It is stepping away from a long running live service game, but its next major growth path is still uncertain.

This would be Bungie’s third round of layoffs since Sony acquired the studio for $3.6 billion. In October 2023, around 100 employees were laid off. In July 2024, another 220 employees were cut, while 155 more roles were moved to Sony Interactive Entertainment instead of being eliminated. Together, those moves reduced Bungie from about 1,200 employees to around 850, a reduction of roughly 40 percent in less than a year.

Former CEO Pete Parsons later admitted that Bungie had been too ambitious with its expansion plans. He left the company in August 2025 and was replaced by Justin Truman. Sony has also acknowledged that Bungie is worth less than originally expected, booking an $800 million impairment loss in its latest financial report.

The situation shows how much pressure Bungie is facing. Destiny 2 remained one of the most important live service games in the industry for years, but maintaining that kind of game is expensive. At the same time, launching a new live service title is difficult, even for a studio with Bungie’s history. Marathon now carries much of that pressure, but it still needs to prove that it can reach a large, stable audience.

For Destiny fans, the clearest takeaway is disappointing. Destiny 2 is winding down, and Destiny 3 is not waiting around the corner. Bungie may return to the franchise through new pitches, spin offs, or another major project later, but right now the studio is entering a transition period with layoffs, uncertain incubation work, and Marathon as its main bet.