Development of The Elder Scrolls 6 has been heavily impacted by the recent wave of layoffs at Xbox, with more than 50 key employees at Bethesda Game Studios being let go. The cuts, which are part of a broader Microsoft initiative that will see 3,200 jobs lost across the industry, have left team morale at the studio feeling "shattered."
Speaking anonymously to IGN, Bethesda staff described the layoffs as having a "substantial and cascading effect" on the project. The reduction in force spans multiple disciplines, including designers, artists, and programmers—some of whom had been with the studio since the development of Morrowind. There is growing concern among the remaining staff that the loss of this institutional knowledge will necessitate the hiring and onboarding of new personnel, a process complicated by the studio's use of proprietary tools that outside developers are unfamiliar with.
Concerns Over Development and Morale
"We've all been very excited and hyped for TES 6 and this has had a crushing effect on morale," one employee stated. "We were already running a tight ship and are worried about this delaying the game."
Staff members are also concerned that the studio may attempt to replace the laid-off talent with cheaper, contracted labor, potentially leading to further delays and an increased reliance on crunch to meet production timelines. The atmosphere at the office has been described as being at "rock bottom."
The tension between staff and management was further highlighted when the Bethesda Game Studios Union attempted to organize a "Celebration of Service" in the office common area to honor those who had been let go. The event was removed by HR almost immediately, with the department reportedly deeming the tribute inappropriate.
A Changing Xbox Strategy
These cuts at Bethesda occur alongside a major strategic shift under Xbox lead Asha Sharma. As part of this transition, the company is allowing studios such as Double Fine and Compulsion to return to independent status, while Ninja Theory and Undead Labs are being sold to as-yet-unconfirmed buyers.
While The Elder Scrolls 6 remains in development for PC and Xbox Series X/S, reports from journalist Jason Schreier suggest the game is still years away from release. With these latest workforce reductions, the timeline for the highly anticipated RPG remains uncertain.