Bethesda is instructing its employees to "change course" and concentrate on games with "greatest potential" as part of a broader organizational shift following Microsoft's substantial layoffs. The directive comes from Bethesda boss Jill Braff in a memo to staff, obtained by IGN, which outlines the need for the company to operate from a more stable foundation and pursue sustainable growth.
These changes are occurring in the wake of Microsoft's announcement of sweeping layoffs impacting 4,800 employees, with 3,200 of those cuts originating from Xbox. Braff stated that these reductions "reflect the realities of our industry and business" and necessitate a reevaluation of Bethesda's operational strategies and franchise focus.
While specific project details were not disclosed, Braff indicated that Bethesda will transition from a model focused on individual studio roadmaps to one that centers on its strongest franchises. This new approach aims to identify a content roadmap that best serves both players and Bethesda as a whole. Teams will now prioritize "the opportunities with the greatest potential."
The memo did not explicitly name all affected studios, but reports suggest that id Software, ZeniMax Online Studios, and Obsidian were among the teams hit by the layoffs. Braff acknowledged that "a day like today" is difficult for employees but emphasized the long-term goal of strengthening the business and ensuring continued investment in its franchises and player base.
Among the upcoming projects mentioned is a fifth mainline Fallout game. The Fallout franchise, along with The Elder Scrolls, has been identified as a key area for future development. In June, a report indicated that Microsoft intended to increase investment in some of Xbox's most prominent franchises, specifically singling out The Elder Scrolls, Fallout, and Halo with the goal of accelerating their development.
The Elder Scrolls 6 is confirmed as the next project from Bethesda Game Studios. The strategic pivot appears to align with Microsoft's stated intention to bolster its major intellectual properties. Some industry observers have attributed the widespread Xbox cuts to "catastrophic mismanagement" by Microsoft leadership, who are reportedly prioritizing investments in artificial intelligence trends.