Bungie is a Sony Interactive Entertainment subsidiary that launched the extraction shooter Marathon in March 2026 and concluded Destiny 2's development in June 2026. The studio is undergoing leadership changes and layoffs: Marathon's game director Joe Ziegler left in July 2026, replaced by Del Chafe III, and most of the Destiny team was laid off in June 2026.
Bungie's transition from the Destiny franchise to the new extraction shooter Marathon has been marked by leadership turnover and significant workforce reductions. Destiny 2 received its final update on June 9, 2026, ending a decade of live-service development. Marathon launched in March 2026 and remains a priority for Sony Interactive Entertainment, but its development has seen two game director changes. Original director Christopher Barrett was fired in March 2024 after an internal investigation into inappropriate comments, then filed a defamation and breach-of-contract lawsuit against Sony and Bungie in December 2024. The lawsuit was settled on July 9, 2026, with Barrett receiving credit on Marathon as "Original Game Director." Less than two weeks later, on July 17, 2026, game director Joe Ziegler announced his departure from Bungie, with Del Chafe III taking over the role.
On June 25, 2026, Sony and Bungie announced layoffs affecting most of the Destiny development team, part of the Marathon team, and SIE staff supporting Bungie. The layoffs were described as the third round in five years. Bungie stated that Destiny 2 had not met expectations in recent years and that the current development structure could not sustain future plans. SIE CEO Hermen Hulst said the decision followed several months of review with Bungie's management regarding long-term direction and development priorities. Affected employees received severance, career transition assistance, and where possible, opportunities within SIE's global studio network.
Separately, former Bungie staff revealed that a dating sim prototype for Destiny 2, styled after Dream Daddy, was pitched annually during internal game jams but rejected by management each year. The disclosure came as the game's live service concluded. The rejection highlights a persistent internal push for lighthearted content in a game known for its serious tone, ultimately blocked by management.
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Jul 20
Joe Ziegler, game director of Bungie's extraction shooter Marathon, announced his departure from the studio on July 17. Del Chafe III will succeed him as game director. Ziegler, a former VALORANT director at Riot Games with a 12-year tenure there, joined Bungie in 2022. He stated he will move to a new role, with details to come. The Marathon development team will continue communication through its X account.
Jul 9
Christopher Barrett, the former director of Bungie's upcoming extraction shooter Marathon, has settled the defamation and breach-of-contract lawsuit he filed against Sony Interactive Entertainment and Bungie in December 2024. Barrett had sought over $200 million (approximately 30 billion yen) in damages, alleging that the companies fabricated sexual harassment allegations to avoid paying him share compensation and retention bonuses owed after Sony's acquisition of Bungie in 2022. The lawsuit was initially dismissed by the Delaware Court of Chancery in December 2025 on jurisdictional grounds, and Barrett refiled in the Delaware Superior Court in January 2026. On July 9, 2026, a joint statement from all parties announced the settlement. Terms were not disclosed, but Barrett said he was "very satisfied with the result." As part of the resolution, his name has been added to the credits of Marathon as "Original Game Director." Barrett was fired in March 2024 after an internal investigation found he had made inappropriate comments about female subordinates' appearances and relationships.
Jun 26
Sony Interactive Entertainment and its subsidiary Bungie announced on June 25, 2026, that they are conducting layoffs as part of an organizational restructuring. The reductions target most of the Destiny development team, part of the Marathon team, and SIE staff who support Bungie's operations. In a statement, Bungie said that Destiny 2 has not met expectations in recent years and that the current development structure cannot sustain future plans. The announcement follows the end of Destiny 2's development, which concluded with a final update on June 9, 2026. SIE CEO of the Studio Business Group Hermen Hulst explained in an internal email that the decision came after several months of review with Bungie's management regarding long-term direction, development priorities, and the studio's role in the broader portfolio. He added that multiple alternatives were considered before concluding that reductions were necessary. Marathon, which launched in March 2026, remains an important part of the SIE portfolio and will continue to receive support. Affected employees will receive severance, career transition assistance, and where possible, opportunities within SIE's global studio network. This is the third round of layoffs at Bungie in the past five years.
Jun 24
Former Bungie staff revealed that a dating sim for Destiny 2 was prototyped during internal game jams but rejected by management each year. The sim, styled after Dream Daddy, was pitched annually by developers but never approved. The disclosure comes as the game's live service concludes after a decade.