Recent mass layoffs at Xbox have cast a shadow over the development of The Elder Scrolls VI, according to multiple sources within Bethesda. Developers speaking anonymously to IGN have expressed significant concerns that the reductions in force will have a "substantial and cascading effect" on the long-anticipated RPG's already protracted development cycle. The loss of experienced personnel across various disciplines is cited as a primary worry.
There is also apprehension among staff that any new hires to fill the departed roles may not possess the necessary expertise in Bethesda's proprietary tools and technology. This could necessitate extensive onboarding, leading to further delays. "There is a fear that we are going to be replaced by cheaper, contracted labor, 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," one developer told IGN.
While The Elder Scrolls VI was officially announced in 2018, Bethesda has historically managed expectations regarding updates, acknowledging that the announcement may have come too early. However, the recent layoffs have introduced a new level of uncertainty regarding the project's timeline, with some developers fearing that previously feasible schedules are now untenable. The impact is not expected to be limited to future projects; existing live-service titles like Fallout 76 are also reportedly facing challenges in ongoing development and updates due to the staff reductions.
"I’ve heard from my colleagues that they’re already being asked to train new contractors," a developer stated. "I have no idea how they’ll continue updating Fallout 76 without hiring an external studio."
Despite assurances that some employees might be safe from further planned layoffs, a sense of instability pervades the studio. The acquisition of Bethesda by Xbox in 2021 has placed numerous studios under Microsoft's umbrella, and many, like Bethesda, are now experiencing the repercussions of these workforce reductions. The uncertainty also extends to the long-term career prospects at the company, with one laid-off staff member remarking, "The ‘survivors’ were told they’re safe from those next 1,600 but it’s not entirely reassuring... It’s had the chilling effect of realizing you don’t get to retire off your work at Xbox. Your time ends when you quit or are laid off, that’s it."