Bethesda is shifting its strategy to concentrate on its most successful franchises and IP in the wake of widespread layoffs across Xbox, according to an internal memo from Bethesda boss Jill Braff. Microsoft recently announced plans to cut approximately 3,200 jobs from its Xbox division over the current fiscal year, with an initial 1,600 positions eliminated on July 6.
In an email to Bethesda staff, Braff stated that these changes reflect "the realities of our industry and business" and the company's "responsibility to ensure Bethesda is operating from a more stable foundation." The memo outlines a move away from a planning model centered on individual studio roadmaps towards a more centralized approach focused on "strongest franchises" and their content.
"To be successful in the future, we need to change course," Braff wrote. "We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players." The company intends to align talent, technology, and resources across the organization to support these prioritized franchises.
The implications of this strategic pivot are significant for several Bethesda studios. Staff reductions have impacted id Software, developer of the Doom series, and ZeniMax Online Studios, which works on The Elder Scrolls Online. While MachineGames' Wolfenstein project appears to be proceeding, the future of other titles, such as Indiana Jones and the Great Circle, remains uncertain. The potential for id Software to assist in developing other first-person shooter titles like a new Wolfenstein or a future Fallout game is being considered.
This strategic refocusing also raises questions about the future development of certain franchises. While The Elder Scrolls 6 is confirmed to be in development, the timeline for Fallout 5, previously considered many years away, might be accelerated. The notes suggest that studios like Obsidian Entertainment, which is currently without a confirmed project, could potentially be involved in future Fallout titles.
Braff emphasized that the shift does not diminish the importance of creative work but rather changes how strengths are aligned to "position Bethesda for long-term growth and continued investment in our future." Further details regarding the company's direction are expected in the coming weeks and months, with the immediate focus on supporting affected employees.