Recent reports from within Bethesda Game Studios suggest that the ongoing restructuring within Xbox's gaming division is having a detrimental effect on the development of The Elder Scrolls 6. Employees speaking anonymously to IGN have expressed significant concerns that the recent layoffs and impending cuts could lead to substantial delays for the highly anticipated RPG, and potentially increase the likelihood of crunch periods.

Bethesda, like many Xbox studios, underwent a significant restructuring in July that resulted in widespread layoffs. While the primary impact was felt by teams working on The Elder Scrolls Online and Fallout 76, some developers involved with The Elder Scrolls 6 were also let go. This reduction in staff, coupled with the knowledge that Xbox plans to cut an additional 1,600 employees across its gaming division, has created a tense atmosphere within the studio.

The loss of institutional knowledge and experience is a critical concern for the development of The Elder Scrolls 6. The core team responsible for Bethesda's flagship RPGs has historically been smaller than those for other major franchises. Even minor cuts could disproportionately affect the project, especially considering its already lengthy development cycle. One employee noted a fear that laid-off workers might be replaced by cheaper contract labor or new hires requiring extensive onboarding with Bethesda's proprietary Creation Engine 3, the same toolset used for Starfield. This process, they believe, could lead to further delays and necessitate crunch to meet deadlines.

Adding to these worries, Xbox is reportedly attempting to mitigate the staffing issues by reassigning employees from The Elder Scrolls Online team to The Elder Scrolls 6 project. However, reports also indicate that Xbox has significantly depleted Bethesda's quality assurance department. Given Bethesda's history of releasing games with notable bugs, this reduction in QA resources is particularly concerning for the final state of The Elder Scrolls 6. The layoffs have also led to the removal of internal remembrance displays for affected employees, further impacting morale.