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Report: Roughly half of the id Software team have been laid off
(www.gamedeveloper.com)
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I don't know what the landscape is like in the gaming industry these days so I can't say if it's the case here, but often that kind of pattern is about eliminating competition (i.e. market manipulation rather than innovation).
Companies that have more than 4% of market share are financially incentived to buy out the competition rather than innovate - it's cheaper. The first study on that is from iirc 60s, still holds true.