Earlier this summer, BioShock 4 reportedly failed an internal review, which led to Cloud Chamber head Kelley Gilmore exiting the studio. Now, Cloud Chamber has been hit with layoffs as a former Diablo boss steps in to take over the studio.Bloomberg's Jason Schreier was the first to report about Cloud Chamber's layoffs. He also added that former Diablo boss Rod Fergusson will be the new studio head for Cloud Chamber. Fergusson previously took over production of BioShock Infinite and helped guide that game to completion. Fergusson recently announced his departure from Blizzard after spending five years with the company.2K Games subsequently shared an internal memo with GameSpot from president David Ismailer, which stressed that the BioShock franchise is important to the company. "While we're excited about the foundational gameplay elements of the project, we've made the decision with studio leadership to rework certain aspects that are core to a BioShock game," said Ismailer.Ismailer characterized the Cloud Chamber layoffs as an opportunity for the remaining developers "to focus on this work and give the game more time in development." He also confirmed Fergusson's new role in the company and touted his track record in the industry."As Head of the BioShock Franchise, Rod will lead Cloud Chamber and oversee the development of the next BioShock game, as well as franchise extensions including our film partnership with Netflix. We will share more about Rod’s onboarding and how these changes will take shape in the coming days and weeks. Rod and I worked together 10+ years ago and I am grateful he has chosen to return to lead our BioShock efforts."Fergusson also shared a statement on social media about his return to 2K Games.Would you kindly allow me to share some news?Some of you guessed it, I’m returning to 2K to lead a series that means a lot to me as the new Head of the BioShock Franchise. I’ll be heading up Cloud Chamber and overseeing development of the next BioShock game, along with… — Rod Fergusson (@RodFergusson) August 19, 2025As for the BioShock movie at Netflix, Francis Lawrence is still attached to direct it. Lawrence's most recent update for the film indicated that a new draft of the film has been written by Terminator: Dark Fate scribe Justin Rhodes. So far, no cast members have been announced.BioShock creator Ken Levine is still working on his next game, Judas, which be published by Take-Two at some point in the future.