Destiny 3 is not happening, Bungie is expected to be hit with significant layoffs

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

The news comes shortly after Bungie confirmed it Fate 2 will receive the last live service content update on June 9, 2026. The update, Monument of Triumph, will mark the end of active development for Fate 2though Bungie said the game would remain playable afterwards, in the same way as the original Fate remained playable.

Most of Bungie's developers are working on Marathon instead of Destiny 2

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

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

In its official announcement, Bungie described Monument of Triumph as a broadcast event Fate 2 and a starting point for what's next for the studio — which he says includes “hatching our next games.” The update will be free for all players and is intended to be implemented Fate 2 more welcoming to returning players before the end of active development. Bungie also said its weekly blog posts will go to sleep after the update, though the studio plans to continue communicating through social media and other channels.

Drag your weapons to fill the grid

Easy to medium hard

However, a Bloomberg report suggests that whatever is coming for Bungie may not be Fate 3despite speculation that she might be next. According to the report, Bungie still plans to pitch and prototype ideas embedded within the framework Fate space, but none of these projects have reportedly been greenlit for full production. That means Fate 3 not currently listed as Bungie's next big project, not even with Fate 2 now entering its final phase as an actively supported game with live services.

Instead, Bungie's current focus seems to be Marathonstudio's extraction shooter and its first major noFate edition in years. According to IGN's summary of Bloomberg's report, Bungie executives previously explored ways to do this Fate 2 more accessible to new players, but the studio eventually shifted more developers and resources towards Marathon. Bungie recently outlined its plans Marathon Season 2, which starts on June 2, features new PvE content, improved onboarding, and changes to make the game less intimidating for newcomers.

Arrange the covers in the correct US release order.

Easy (5) Medium (7) Hard (10)

However, it focus on Marathon it comes at a difficult time for Bungie and Sony. Sony bought Bungie for $3.6 billion in 2022 as part of PlayStation's broader ambitions for the live service, but the acquisition has yet to fully pay off. Sony recently reported a $765 million impairment loss related to Bungie, with the losses allegedly linked to the company's underperformance Fate 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, economic pressure and the studio taking on too much at once as reasons for the shakeup.

For now, Bungie's future seems to hinge on whether Marathon can restore and whether any future Fate projects can go beyond the stage of presentation and prototyping. Fate 2 will be playable even after the last live service update is launched but with no Fate 3 Currently in development and with significant layoffs reportedly expected, Bungie appears to be entering one of the most uncertain chapters in its history.