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The end of an era: Bungie halts Destiny 2 development, shifts focus to marathon amid massive layoffs

In a shocking announcement that has reverberated across the gaming industry, Bungie has officially declared that active development on Destiny 2 will draw to a close next month. Instead of transitioning into a highly anticipated Destiny 3, the studio is facing another wave of massive layoffs as Sony shifts the remaining workforce onto the upcoming extraction shooter, Marathon.

Bungie halts Destiny 2
Bungie halts Destiny 2

The announcement effectively marks the sunsetting of one of the most successful live-service titles in gaming history.

The final update: “Monument of Triumph”

Bungie confirmed that the game will receive its final live-service content update, titled Monument of Triumph, on June 9, 2026.

  • The Server Future: Much like the original Destiny, the servers will remain online, and the game will continue to be playable for the foreseeable future.
  • What’s Included: The final patch will act as a “love letter” to the community, bringing requested overhauls including a refreshed Director navigation hub, a permanent Pantheon boss gauntlet, sandbox updates, and new destination events called “Distortions.”
  • Static World: After June 9, Destiny 2 will enter a permanent preservation state, meaning no new story arcs, seasonal expansions, or weapon drops will ever be added.

Why Destiny 3 was axed

According to Bloomberg investigative journalist Jason Schreier, the decision not to move forward with Destiny 3 comes down to a familiar roadblock: ballooning production costs. Taking to Bluesky, Schreier noted that the sheer amount of capital required to build a full-scale sequel from the ground up was deemed too financially risky by Sony leadership, especially given Destiny 2‘s recent struggles to attract and retain new players post-The Final Shape.

While internal teams at Bungie have spent months pitching and prototyping new concepts—including smaller spin-offs set within the Destiny universe, Sony has refused to greenlight any of them.

Massive layoffs on the horizon

Because Destiny 2 required a massive, dedicated live-service team to maintain, closing active production means a significant portion of Bungie’s staff no longer has a project to work on.

Bloomberg reports that Sony is planning a “significant” number of layoffs in the near future. Because the studio is based in Seattle—a notoriously expensive region for game development and Sony has already written off hundreds of millions of dollars against Bungie’s value since the 2022 acquisition, corporate leadership is aggressively downsizing.

The remaining skeleton crew will be completely redirected to finish Marathon, a project that has suffered from prolonged development cycles and heavy pressure to perform. The situation draws bleak parallels to PlayStation’s recent treatment of other first-party acquisitions, like Bluepoint Games, which faced restructuring after failing to get original live-service pitches approved.

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