Xbox CEO Asha Sharma Confirms Wolfenstein 3 and New id Software Project Amid Layoffs

Key points

• Asha Sharma announced on November 12, 2026, that Wolfenstein 3 is officially in production at MachineGames.
• The announcement included a script excerpt and motion-capture photos featuring returning actors Brian Bloom and Debra Wilson.
• id Software confirmed it is working on a new game, with TechPowerUp suggesting it is likely a Doom sequel due to the involvement of director Hugo Martin.
• These reveals follow major layoffs at Xbox, including 96 job cuts at id Software in July 2026, which some described as a 'bloodbath'.
• No release dates, platforms, or gameplay details were disclosed for either project.

Background

Xbox has faced significant restructuring in 2026, including proposed studio closures and mass layoffs affecting 3,200 employees. id Software, a key Microsoft-owned studio, lost 96 of its 136 staff in July. Prior to these announcements, Xbox had reassured fans that The Elder Scrolls 6 and a new Fallout game were unaffected by the cuts. The Wolfenstein franchise, originally launched in 1981, has seen recent entries developed by MachineGames under Xbox ownership since Microsoft's acquisition of ZeniMax Media in 2021.

How outlets are covering it

Eurogamer frames the announcements as part of a PR offensive by Asha Sharma to counter negative news about Xbox's restructuring and layoffs. Game Informer notes that Wolfenstein 3's production start is recent, suggesting no substantial updates for a while, and highlights the return of key cast members. Variety emphasizes the franchise's history and the fact that this is the first Wolfenstein game developed by MachineGames under Xbox ownership. TechPowerUp focuses on the id Software announcement, suggesting the new game is likely a Doom sequel due to the involvement of director Hugo Martin, while also noting community concerns about the quality of recent Doom titles and the impact of layoffs on development.

Why it matters

The confirmation of new projects at MachineGames and id Software is significant for fans of these franchises, especially given the recent layoffs and uncertainty surrounding Xbox's future. It signals that Microsoft is still investing in key franchises despite the restructuring, but also raises questions about the quality and development timeline of these games given the reduced staff at id Software.

What to watch

Fans should expect more details on Wolfenstein 3 and the new id Software game in the coming months, though no specific release dates have been announced. The announcements may also influence the trajectory of other Xbox franchises and the studio's approach to development in the post-layoff era.