Bethesda announces Fallout 5 and Elder Scrolls VI as Montreal studio faces layoffs and union lawsuit

Bethesda Game Studios confirmed that new entries in its flagship series – Fallout 5 and The Elder Scrolls VI – are in development. Todd Howard said the titles will use the forthcoming Creation Engine 3, following the technology used for Starfield, and that release windows remain unannounced.

On the same day the announcements were made, the studio’s Montreal workforce was hit by a large layoff. Employees were first notified via a video call on July 6 that they would be out of work by September, and on July 17 they received a final email stating they would receive only the legal minimum severance without union‑negotiated terms. The staff, many of whom have worked on prior Fallout and Elder Scrolls games, are represented by the OneBGS union, which has declared that the company’s actions violate Canadian labor law and announced legal action against Bethesda and Xbox.

The dual events highlight both the company’s future product roadmap and the ongoing labor dispute within its Canadian studio.