“We were already running a tight ship”: Elder Scrolls 6 devs are worried about Xbox’s layoffs causing even more delays to the long-awaited RPG
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Bethesda developers have reportedly raised concerns that Microsoft's recent mass layoffs across its Xbox studios could further delay the long-awaited Elder Scrolls 6, on top of damaging staff morale. Speaking to IGN, workers said the cuts have affected employees across multiple disciplines, from programming to art, and warned that their departure would have a "substantial and cascading effect" on both the game and the wider studio. The reports matter because they suggest Microsoft's stated aim of producing major RPGs faster may be undermined by the very restructuring intended to streamline its operations.
Staff told IGN they fear being replaced by cheaper contracted labour, or that new hires will require lengthy onboarding to learn Bethesda's proprietary tools, resulting in delays and crunch to make up lost time. The Elder Scrolls 6 was first announced in 2018 via a brief teaser of a coastal landscape, with updates remaining scarce as the studio focused on releasing Starfield; Todd Howard said late last year that it was "progressing really well" but "still a long way off". The concerns come amid wider reports that Xbox wants to accelerate output of its Fallout and Elder Scrolls series, with Obsidian reportedly being redirected to work on Fallout.
- Bethesda staff fear Xbox layoffs will further delay Elder Scrolls 6.
- Cuts hit multiple disciplines and reportedly tanked studio morale.
- Workers fear cheaper contractors, onboarding delays and crunch.
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Bethesda's next big fantasy role-playing game, The Elder Scrolls 6, was announced back in 2018 with a short teaser trailer, and has had very little in the way of updates since, as the studio concentrated first on finishing Starfield. It is one of the most anticipated video games in development, the successor to the hugely popular Skyrim, and its progress has long been closely watched by fans, though Bethesda has repeatedly said it remains some way from release.
Bethesda is owned by Microsoft, which also owns Xbox, and has recently carried out mass layoffs across its games division as part of a broader restructuring effort. Microsoft has said it wants its studios, including Bethesda and Obsidian, to produce major role-playing games more efficiently and quickly, but job cuts of this kind typically mean the loss of experienced staff and institutional knowledge, which can slow down complex, long-running projects.
This context matters because any impact on Elder Scrolls 6's development timeline, or on the working conditions of the people making it, would affect one of the industry's most eagerly awaited releases. It also speaks to a wider debate about how large layoffs at games companies affect both the people who make games and the games themselves.
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The strongest fair case each way — we don't pick a winner.
The case for
Large game studios often accumulate inefficiencies that impede development speed and project delivery, making periodic restructuring an unfortunate necessity for long-term competitiveness. Microsoft's goal of accelerating major releases may require difficult decisions to streamline operations and focus resources on key priorities, with leaner teams sometimes delivering better results than larger, more complex organisations. Whilst the transition creates genuine short-term disruption, this restructuring could ultimately enable faster project completion rather than delay it.
The case against
The loss of experienced Bethesda developers represents a significant erosion of institutional knowledge and expertise, particularly regarding proprietary systems and development approaches that require years to master. New hires and contractors require substantial onboarding periods before becoming productive, and this disruption risks extending development timelines for an already years-in-development project, directly contradicting Microsoft's stated objective of accelerating major releases. Reduced employee morale and job security also threaten the creative quality necessary during critical development phases, when studio cohesion is most valuable.