Elder Scrolls 6 Devs Fear Further Delays After Xbox Layoffs

The full impact of Xbox’s latest wave of mass layoffs remains elusive, as the raw numbers fail to capture the depth of institutional knowledge that is being lost. Studios such as id Software, the creators of Doom, and Obsidian, behind Avowed, are scrambling to reorganize after shedding large portions of their teams. At Bethesda, where work on The Elder Scrolls VI has been progressing quietly, developers warn that the project’s already fragile development trajectory will suffer further blows from these cuts.

IGN’s conversations with Bethesda insiders paint a bleak picture. The departure of developers across multiple disciplines is expected to trigger a “substantial and cascading effect” on both the game’s development and team morale. Moreover, there is growing concern that the positions left vacant may be filled by talent unfamiliar with Bethesda’s proprietary technology, potentially compromising the studio’s creative vision.

“We’re worried that we’ll be replaced by cheaper, contracted labor, or that we’ll have to hire people who need to be onboarded—our tools are proprietary, and other devs won’t know how they work—leading to more delays, and we’ll have to crunch to make up the time,” a Bethesda developer told IGN.

Since its 2018 announcement, Bethesda has repeatedly cautioned that the game was revealed too early and that fans should not expect frequent production updates. Yet, recent statements from developers suggest that the timeline the team was operating on just weeks ago may no longer be realistic without the talent lost in Xbox’s latest cuts. Even established titles like Fallout 76 are expected to feel the ripple effects, as support and content updates may slow down or be scaled back in the wake of these workforce reductions.

A developer confided in IGN that colleagues are already being asked to train new contractors, and expressed uncertainty about how Fallout 76 will be maintained without external studio support.

Even though some Bethesda staff were assured they would be exempt from the upcoming round of layoffs slated for later this year, the sense of security is fleeting after years of recurring cuts.

A former employee noted that the so‑called “survivors” were told they were exempt from the next 1,600 positions, yet that reassurance feels hollow. They question whether another wave of 1,600 could follow next year, noting the unsettling reality that employees cannot rely on a stable career at Xbox; their tenure ends only when they resign or are dismissed.

Microsoft’s 2021 acquisition of Bethesda and its affiliated studios marked a major expansion for the gaming titan, but the recent wave of layoffs has rippled across the newly integrated portfolio. Several studios are now being spun off, including Arkane, the creators of Dishonored, which is reportedly negotiating a divestiture from Microsoft.