Bungie and Sony Interactive Entertainment settled a lawsuit with former director Christopher Barrett. The studio, after laying off most of the Destiny team and part of the Marathon team in June 2026, is now focused on supporting Marathon; Destiny 2 development concluded with a final update on June 9, 2026.
Bungie entered 2026 in a period of transition. The studio's long-running live-service shooter Destiny 2 received its final update on June 9, 2026, ending a decade of content. Less than three weeks later, on June 25, Sony Interactive Entertainment and Bungie announced layoffs that cut most of the Destiny team and part of the Marathon team. In a statement, Bungie said Destiny 2 had not met expectations in recent years and that the development structure could not sustain future plans. SIE CEO Hermen Hulst said the decision followed several months of review with Bungie's management. This was the third round of layoffs at the studio in five years.
Meanwhile, a legal battle that began in 2024 came to a close. Former Bungie director Christopher Barrett, fired after an internal investigation found he made inappropriate comments toward female employees, had sued for breach of contract and defamation seeking over $200 million. On July 9, 2026, Barrett announced a settlement with both Bungie and Sony. He said he was "very satisfied" with the outcome; terms were not disclosed. The case had been dismissed from Chancery Court and refiled before the settlement.
Amid these events, details emerged about internal culture. Former staff revealed that a Destiny 2 dating sim, styled after Dream Daddy, was prototyped during internal game jams but rejected by management each year. The disclosure came as the game's live service wound down. Marathon, which launched in March 2026, remains an important part of the SIE portfolio and will continue to receive support, according to the company.
Synthesized by Yomimono from the cited Yomimono stories below, each itself
sourced, then editorially reviewed. Every
fact links the story it came from.
3d ago
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.