Bethesda confirms Elder Scrolls VI is priority as Fallout 5 stalls
Developed over time first seen 3 months ago
Bethesda Game Studios director Todd Howard has published a fan-facing update confirming "The Elder Scrolls VI" remains the studio's "primary development focus," with most of the team working on it, while "Fallout 5" has settled into preproduction rather than full development. The statement, issued on Friday, follows sweeping layoffs at parent company Xbox earlier this month and was framed as reassurance about Bethesda's direction amid the wider upheaval within Microsoft's gaming division.
Howard confirmed both titles are being built on Creation Engine 3, a shared platform developed since "Starfield" that allows teams to work on multiple projects simultaneously. He noted "Skyrim" has sold over 65 million copies and is still played 15 years on, acknowledging fans' long wait for its sequel while insisting development is on track. He also confirmed several Fallout projects are active, including one made with Xbox studio Obsidian Entertainment, against a backdrop in which Xbox is cutting up to 3,200 jobs (20% of its workforce), with at least 1,600 staff already laid off and 350 more lost through divested studios since the cuts were announced on 6 July.
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In short
- Elder Scrolls VI is Bethesda's top priority; Fallout 5 stays in preproduction
- Both games use new shared Creation Engine 3 technology
- Update follows major Xbox layoffs affecting up to 3,200 jobs
How this story developed
- 3 months ago Further reporting characterised Sharma's overhaul as Xbox's most significant restructuring to date, while reaffirming that at least 1,600 staff have already been cut and 350 more lost through studio divestitures since the announcement.
- 3 months ago The update was clarified to show it was CEO Asha Sharma, newly installed at Xbox, who announced on 6 July the plan to eliminate up to 3,200 roles, a fifth of the workforce, over the coming year, adding firmer detail to the layoffs referenced in Howard's message.
- 3 months ago Todd Howard published a fan-facing statement confirming "The Elder Scrolls VI" remains Bethesda's chief priority, with "Fallout 5" moved into preproduction, coming days after Xbox announced deep job cuts across its gaming division.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Skyrim's exceptional 65-million-copy sales and sustained engagement 15 years later represent an unparalleled strategic opportunity that justifies prioritisation to meet a decade-plus fan expectation. Amid substantial post-layoff staff reductions and a newly-implemented shared engine requiring concentrated technical expertise, focusing resources on Bethesda's most commercially validated franchise ensures quality delivery rather than dividing effort across multiple projects and risking mediocrity.
The case against
Fallout 4's commercial success and the franchise's devoted fanbase merit parallel development through the shared Creation Engine 3, which was designed precisely to enable simultaneous projects. Relegating Fallout 5 to preproduction appears reactive to staffing constraints rather than strategically optimal; extended delays risk audience erosion and cede opportunity to competing franchises in the engaged post-apocalyptic gaming community.
Explained simply
The Elder Scrolls and Fallout are two long-running role-playing game series made by Bethesda Game Studios, part of Microsoft’s Xbox business. The Elder Scrolls is set in a fantasy world, while Fallout takes place in a future shaped by nuclear war; both let players explore large worlds and make choices.
The last main Elder Scrolls game, Skyrim, was released in 2011 and became one of the best-known games of its kind. Bethesda announced a follow-up, The Elder Scrolls VI, in 2018, but has given few firm details since, leaving fans waiting for clearer signs of progress.
Fallout’s most recent main single-player release from Bethesda was Fallout 4 in 2015, though other studios have also worked on games in the series. Bethesda’s plans are being closely watched because Xbox, which owns the studio, has recently reduced jobs and changed parts of its games business.
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Originally published by Variety as “‘Fallout 5’ in Preproduction, ‘Elder Scrolls 6’ Is Bethesda’s ‘Primary Development Focus’ Following Xbox Layoffs, Studio Chief Says”.