The recent wave of layoffs across Xbox has severely impacted Bethesda’s studios, prompting significant restructuring and a re-evaluation of its game development strategy. With cuts affecting prominent developers like Bethesda Game Studios, id Software, and ZeniMax Online Studios, the future of highly anticipated titles such as The Elder Scrolls 6 and Fallout 5, alongside ongoing projects and new ventures like Marvel’s Blade, hangs in the balance. Xbox’s new CEO, Asha Sharma, has outlined a clear path: a sharper focus on major franchises and increased collaboration between studios to ensure a more stable foundation and sustainable growth for the business.
Bethesda boss Jill Braff echoed this sentiment in an internal email, emphasizing a shift from independent studio planning to a unified strategy centered on their strongest franchises. This move aims to align talent, technology, and resources more efficiently. While the immediate aftermath has left many staff members anxious about their job security, with over 1,000 Xbox positions still slated for reduction, the company insists that development continues. However, the industry grapples with profound questions about the quality of upcoming games and the long-term viability of Microsoft’s gaming division.
The Elder Scrolls 6 — what’s happening with it?
The development of The Elder Scrolls 6, announced way back in 2018, faces renewed scrutiny following the Xbox layoffs. Reports indicate that Bethesda Game Studios staff are concerned about a “substantial and cascading effect” on the game’s progress, fearing potential delays, increased crunch, and the replacement of experienced talent with contract workers. Morale has undoubtedly taken a hit. Despite these anxieties, the game is still reportedly at least two years away from release. The BGS union, OneBGS, plans a protest march, alleging that Microsoft is attempting to circumvent bargaining obligations by rebranding cuts as strategic shifts. Nevertheless, sources close to Bethesda express confidence that the studio’s ambitious plans for the RPG remain unchanged, asserting the game is currently on track, even if that means a distant launch date.
What Are Your Favorite Bethesda Game Studios RPGs?
Amidst these challenges, the enduring love for Bethesda Game Studios’ RPGs, from Fallout 3 to Skyrim, highlights the high expectations for The Elder Scrolls 6. Fans eagerly await a new epic, making the current development concerns particularly poignant for the community.
Pick a winner
The imperative for Xbox and Bethesda is to consistently deliver “winners” to solidify their position. Every new release, especially flagship titles like The Elder Scrolls 6, needs to meet high standards to justify the investment and quell industry anxieties.
Xbox Games Series Tier List
The Elder Scrolls and Fallout consistently rank among Xbox’s top-tier franchises. The current restructuring aims to leverage these established successes, ensuring they remain strong pillars within the company’s revamped content roadmap and overall strategy.
Fallout 5, Fallout 76, Fallout Shelter, and a Fallout game from Obsidian, with more Fallout to come
The Fallout franchise is undeniably a central pillar of Xbox’s new strategy, with multiple projects reportedly in motion. Bloomberg revealed that Obsidian Entertainment, known for Fallout: New Vegas, is now developing a new Fallout title, with Bethesda’s support. This signals a clear intention for faster and more frequent Fallout content. Todd Howard has openly stated that Fallout 5 will follow The Elder Scrolls 6 and will incorporate the narrative canon established by the critically acclaimed TV series. Meanwhile, Fallout 76 continues to be a significant live-service operation with millions of players, its development team largely unaffected. Fallout Shelter remains active, and a Fallout 3 remaster is widely rumored. The overarching goal is a collaborative effort across studios to significantly expand the franchise’s presence.
Concern over The Elder Scrolls Online
The Elder Scrolls Online (ESO) has explicitly felt the impact of the Xbox layoffs, with its development roadmap undergoing forced changes. While the precise number of staff directly working on ESO who were laid off remains undisclosed, there is understandable worry for the remaining team and the game’s future trajectory. ZeniMax Online Studios (ZOS) is committed to supporting ESO‘s seasonal content model. Additionally, sources indicate that ZOS is actively exploring deeper collaborations with Bethesda Game Studios to bolster the broader Elder Scrolls franchise, which could potentially involve assisting with the development of The Elder Scrolls 6 to ensure its timely release.
What next for Starfield?
Following the layoffs, fans noted Starfield’s absence from Bethesda’s recently articulated priority list, sparking concern. Despite its highly anticipated launch in 2023, the space RPG received a mixed reception, and subsequent updates and expansions haven’t substantially shifted public perception. Many dedicated fans had hoped for further expansions and potentially a sequel, envisioning Starfield as a new core Bethesda franchise alongside Fallout and The Elder Scrolls. Sources suggest that the current roadmap for Starfield remains unchanged, with the team continuing to work on planned updates and content. The exact scope of this future content is not fully clear, but a rumored Nintendo Switch 2 version is also reportedly under consideration, indicating continued, albeit perhaps cautious, investment.
Hope for Arkane and Marvel’s Blade to survive
The situation at Arkane Lyon, developers of the acclaimed Deathloop, remains precarious. Microsoft has initiated a consultation process with the French Works Council to explore “potential strategic options,” implying a possible sale. This leaves the studio’s staff in an uncertain holding pattern, anxiously awaiting news of their fate. The hope is that Arkane Lyon can follow in the footsteps of other studios like Ninja Theory and Undead Labs, which found new buyers after being affected by similar restructures, ensuring the continued development of their projects. Specifically, the highly anticipated Marvel’s Blade, which was reportedly on track for an early 2025 reveal and a late 2027 release, is expected to survive and ultimately see the light of day.
id Software hopes to make great games again
Doom developer id Software responded to the layoffs by asserting its continued capability to create “great games.” The studio confirmed that its current staffing levels are comparable to those during the development of the successful 2016 Doom reboot. Dispelling rumors, Xbox clarified that dozens of individuals across multiple locations are still working on id Tech, the proprietary game engine. In a public statement, id Software emphasized its commitment to its flat studio philosophy, supporting impacted team members, and continuing to build the innovative games and technology for which it’s known. While no new projects are officially announced, sources suggest id was prototyping several ideas before the layoffs, including a new original IP in the vein of John Wick, a fresh take on Perfect Dark, and a multiplayer-focused Doom game, highlighting their ambition to innovate.
MachineGames safe for now
MachineGames, the Swedish studio behind the critically acclaimed Wolfenstein series, emerged from the recent wave of Xbox layoffs seemingly unscathed. Reports indicate that Wolfenstein 3 is currently in development, offering a degree of stability for the team. However, as a European studio, any potential future cuts would need to adhere to local labor laws, which can be a more intricate and time-consuming process. This means that while safe for now, staff might still feel an underlying uncertainty. Meanwhile, the prospect of a sequel to their recently released and well-received Indiana Jones and the Great Circle, despite its narrative setup for future installments, remains ambiguous, indicating that not all successful projects are guaranteed follow-ups in this shifting landscape.
Big questions remain for Bethesda, and for Xbox
The recent layoffs represent what Xbox CEO Asha Sharma termed “the most significant restructure in Xbox history,” leaving Microsoft’s gaming division facing profound, unanswered questions. Beyond the immediate goal of profit growth, the company must demonstrate its ability to consistently produce hit games and expand Game Pass subscriptions. Speculation abounds regarding Xbox’s long-term future, with possibilities ranging from a sale or spin-off to a joint venture or even the divestiture of certain business segments. Adding to the complexity is a looming “hardware crisis,” as the next-generation Xbox, codenamed Project Helix, is rumored to potentially exceed a $1,000 price point. Amidst this turmoil, many wonder if The Elder Scrolls 6 will ultimately launch alongside this costly new console, becoming a flagship title tasked with revitalizing the brand.
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