Destiny 3 not in development, Bungie to hold more layoffs following Destiny 2's retirement

Bungie is set to hold more job cuts following a decision to dial-back its breadwinning live service game.

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Disappointing news for Destiny fans today as Bungie announced that they will be retiring the game from active development, effectively sunsetting the project into maintenance mode and ceasing all future content. This means all upcoming expansions have been cancelled.

There was hope among Bungie faithful that Destiny 3 could be in development, but that's not the works right now, so fans shouldn't expect to see a surprise announcement at Sony's upcoming State of Play. Sources tell Bloomberg's Jason Schreier that the Destiny 2 dev team does not currently have a project lined up, and that these workers are pitching new ideas to management, including new games set in the Destiny series.

Bungie is currently gung-ho on its other franchise, Marathon, which is said to have missed sales expectations and driven an expensive quarter of costly impairment charges for the PlayStation games division.

Layoffs are said to be a part of this new shift at Bungie, but the impact has not been revealed. Sony did record a $700 million+ impairment in FY25 alone due to Bungie, writing it down against Bungie's assets, and it's currently unknown what the group's earnings look like.

Sony is currently enjoying its best-ever year for operating profits and gross revenues with over $3.7 billion and $31 billion respectively, despite the costly charges due to Bungie's underperformance throughout the year. Given the results of Sony's other live gaming experiments, the company may be reticent to greenlight any costly new projects at Bungie, especially now that it's recently raised console prices as well as PlayStation Plus subscription prices.