Former Bungie chief legal officer Don McGowan reveals how the studio hired fans to save money and discusses unionization efforts, layoffs, and internal tensions.
Bungie, the studio behind iconic franchises like Destiny and the upcoming Marathon reboot, has been navigating turbulent waters. In recent months, the company has faced two waves of layoffs, letting go of over 300 employees, including many long-time staff members.
This downsizing occurred alongside delays for Marathon, which is now pushed to 2025. While Bungie has attributed these setbacks to a need to refocus, some former employees are speaking out, shedding light on a more complex picture of the company’s internal dynamics.
Among them is Don McGowan, who served as Bungie’s General Counsel during a pivotal time in its history, including its acquisition by Sony Interactive Entertainment. In a recent interview with the International Alliance of Theatrical Stage Employees (IATSE), McGowan pulled back the curtain on Bungie’s hiring practices and management strategies.
“We Hired Fans Because Fans Would Work For Less”
According to McGowan, Bungie often leveraged its fans’ passion for its games as a cost-saving strategy. The studio’s hiring approach, he explained, included targeting dedicated players who would accept lower wages simply for the chance to work on something they loved. (transcribed by The Game Post)
“[With] gaming companies, one of the things that they could get away with is low pay, because you’re working on a game you love,” said McGowan. “And we totally took advantage of that at Bungie. We hired fans because fans would work for less.”
“When I came over from [The Pokémon Company] to Bungie, about one in three people asked me, ‘How much of a pay cut are they making you take?’ You don’t want that f***ing reputation… But when you only hire fans, you can get away with that.”
McGowan also talked about the discussions of unionization in the games industry. He shared an anecdote from his time at Bungie that highlighted these whispers. “When I was at Bungie, [there were] discussions of unionization there. So, my employment lawyer, was a woman named Lindsay, she was in a meeting and somebody was like, ‘Do you think you and Don [McGowan] could do a presentation for us on unions?’
“She came and told me this, and I was like, ‘How did you answer that?’ And she said, ‘Well, my answer was I don’t think you want the company’s head lawyer telling you about unionization because he’s probably got some positions that the company requires him to hold.'”
He also explained a common tactic used in the industry to address unionization efforts: promoting potential organizers. McGowan described how this approach is often deployed to diffuse union momentum by altering the organizer’s role. “You promote [potential organizers] out of being able to organize… Once you give them people who report to them, they are no longer part of the bargaining unit,” he explained.
McGowan also revealed that during his time at Bungie, the company had approximately 1,600 employees. Earlier this year, CEO Pete Parsons confirmed that the workforce now stands at “850 team members building Destiny and Marathon.” This indicates a staggering workforce reduction of nearly 47% within just one year.
In an interview with Game Developer, McGowan also talked about how the “game industry must unionize.” In related news, Chris Barrett, a former director at the company, filed a $200 million lawsuit against Bungie and Sony today, alleging wrongful termination to avoid paying nearly $50 million in compensation.
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