Bethesda layoffs trigger fallout fears and elder scrolls 6 anxiety
Microsoft’s sweeping cuts at Xbox have sent shockwaves through Bethesda Game Studios, leaving employees fearing for their jobs and casting a shadow over the future of beloved franchises like The Elder Scrolls and Fallout. A staggering 379 employees were laid off across ZeniMax Online Studios, Bethesda Game Studios itself, and id Software this week, a direct consequence of CEO Asha Sharma’s new focus on “bigger franchises” and tighter collaboration within the Xbox ecosystem.
Morale plummets as development roadmaps shift
The immediate impact is palpable. According to reports from IGN, staff at Bethesda Game Studios (BGS) are deeply concerned that the layoffs will have a “substantial and cascading effect” on the development of The Elder Scrolls VI, a title already notorious for its protracted development cycle. The game, announced in 2018, is reportedly at least two years from release, and these cuts threaten to push that timeline even further.
“There is a fear that we are going to be replaced by cheaper, contracted labor,” one developer confided to IGN, “or we will hire folks to replace them that will need to be onboarded (our tools are proprietary, other devs aren't going to know how they work) resulting in more delays, and we'll need to crunch to make up the time.” The sentiment reflects a broader anxiety: a loss of institutional knowledge and the potential for increased pressure as deadlines loom.
A franchise-focused future: what happens to starfield?
Sharma's vision for Xbox prioritizes collaboration and the scaling of established properties like Halo, Minecraft, and Candy Crush. While Bethesda boss Jill Braff insists the studio is “shifting from a planning model primarily centered on what’s next for each independent studio to one that focuses on our strongest franchises,” the implications for projects like Starfield—which underperformed expectations last year—are unclear. Despite assurances from Microsoft that the currentStarfield roadmap remains unchanged, the game's absence from Sharma’s list of priority franchises raises questions about its future.
But the Fallout franchise appears poised for a resurgence. Bloomberg has reported that Obsidian Entertainment, the studio behind Fallout: New Vegas, is now working on a new Fallout game, supported by Bethesda. Several Fallout projects are reportedly in development across Bethesda and its partners, including a long-awaited Fallout 5, which Todd Howard has confirmed will incorporate elements from the recent Amazon TV series. Even Fallout 76, a controversial entry in the series, remains a significant operation with hundreds of developers and millions of players.
Union action and the fight for worker rights
The layoffs have spurred action from OneBGS, the Bethesda Game Studios union, which plans to march outside the studio’s offices on July 15. The union alleges that Microsoft is attempting to “dodge their legal obligation to bargain the decision” with them, dismissing the restructuring as mere “corporate wordplay.” This fight underscores a growing trend in the gaming industry – workers demanding a voice in decisions that impact their livelihoods and working conditions.
The situation at Arkane Lyon, developer of Deathloop, remains fluid, with management reportedly consulting with worker representatives. Microsoft’s decision to sell off Ninja Theory and Undead Labs offers a glimmer of hope that Arkane Lyon may find a buyer, ensuring the continuation of its creative work.
As for id Software, the Doom developer has acknowledged the cuts, stating that its workforce is now comparable to that of the team behind the acclaimed 2016 Doom reboot. Despite the reduction, the studio insists it’s “focused on supporting each other and the team members impacted,” and remains committed to “building the great games and tech” it is known for.
The restructuring at Xbox represents more than just job losses; it signals a fundamental shift in the company’s strategy and a period of significant uncertainty for Bethesda and its iconic franchises. As one Bethesda developer bluntly put it, “We were already running a tight ship and are worried about this delaying the game.” The industry waits, and watches, as Microsoft navigates this challenging new chapter.