Bethesda's long-awaited role-playing game The Elder Scrolls 6 has been thrown into doubt following sweeping layoffs across Xbox's studios in July 2026, according to developers working on the title. An earlier report had suggested the Skyrim sequel was still two years or more from completion, and staff who spoke anonymously to IGN have now painted a grim picture, warning that the cuts could cause further delays and force heavy crunch to make up lost time. The situation matters because it signals fresh trouble for one of gaming's most anticipated releases, and reflects wider instability at Xbox, which reportedly plans to cut a further 1,600 gaming employees before its fiscal year ends.

While the teams behind The Elder Scrolls Online and Fallout 76 were said to be hardest hit, some staff on The Elder Scrolls 6 were also let go from what has historically been a relatively small team. Developers voiced fears of being replaced by cheaper contractors and of losing institutional knowledge of Bethesda's proprietary Creation Engine 3, with new hires needing lengthy onboarding. Xbox is reportedly moving staff from The Elder Scrolls Online to help, but the studio's quality assurance department was said to have been "decimated" — a concern given Bethesda's reputation for buggy launches. Management also drew criticism for swiftly removing tribute displays honouring laid-off workers from office common areas.