Destiny 3 is not happening, Bungie is expected to suffer significant layoffs

Bungie is reportedly facing another big round of layoffs, and Destiny 3 is not currently in active development. According to a new Bloomberg report cited by IGN Destiny 2 the developer is expected to face “significant” layoffs in the near future, adding even more uncertainty to the studio's future after years of instability under Sony.

The report comes shortly after Bungie confirmed it Destiny 2 will receive its final live service content update on June 9, 2026. The update, Monument of Triumph, will mark the end of active development for Destiny 2although Bungie has said that the game will remain playable afterwards, just like the original Fate has remained playable.

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Most Bungie developers are working on Marathon instead of Destiny 2

A new report indicates that the majority of the team working at Bungie has been assigned to work on Marathon instead of Destiny 2.

Bungie is reportedly moving on from Destiny 2, but Destiny 3 isn't its next step

In its official announcement, Bungie described Monument of Triumph as a ban for Destiny 2 and a starting point for what's next for the studio — which it says involves “incubating our next games.” The update will be free for all players and is meant to be done Destiny 2 more welcoming for returning players before active development ends. Bungie also said that their weekly blog posts will go on hiatus after the update, though the studio plans to continue communicating via social media and other channels.

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However, Bloomberg's report suggests that whatever comes next for Bungie may not be it Destiny 3despite speculation that it may be next in line. According to the report, Bungie still plans to pitch and prototype ideas contained within Fate universe, but none of those projects have reportedly been greenlit for full production. It means Destiny 3 isn't currently lined up as Bungie's next big project, even with Destiny 2 is now entering what is essentially its final stage as an actively supported live service game.

Instead, Bungie's current focus seems to be Marathonstudio's extraction game and its first major non-Fate released in a year. According to IGN's summary of Bloomberg's report, Bungie leadership had previously explored ways to do so Destiny 2 more accessible to new players, but the studio eventually moved more developers and resources towards Marathon. Bungie recently outlined its plans for Marathon Season 2, which begins on June 2, includes new PvE content, improved introduction, and changes aimed at making the game less intimidating for newcomers.

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However, to focus on Marathon comes at a difficult time for Bungie and Sony. Sony acquired Bungie for $3.6 billion in 2022 as part of PlayStation's broader live service ambitions, but the acquisition has yet to take full effect. Sony recently reported a $765 million impairment loss linked to Bungie, with losses reportedly linked to underperformance for Destiny 2 and Marathon.

This is also far from the first round of layoffs Bungie has faced in recent years. The studio laid off 220 employees in 2024, representing roughly 17% of its workforce, while another 155 employees were moved to roles within Sony Interactive Entertainment. At the time, Bungie CEO Pete Parsons cited rising development costs, financial pressures and the studio taking on too much at once as reasons for the shakeup.

For now, Bungie's future seems to depend on whether Marathon can recover and if any future Fate projects can go beyond the pitch and prototype phase. Destiny 2 will remain playable after the last live service update goes live, but with no Destiny 3 currently in development and significant layoffs reportedly expected, Bungie appears to be entering one of the most uncertain chapters in its history.