Xbox layoffs threaten Bethesda's The Elder Scrolls 6 and Online

Microsoft’s latest Xbox restructuring has cut roughly a fifth of the division’s workforce, including more than 50 staff members from Bethesda Game Studios. The layoffs removed key programmers, artists and designers, some of whom have been with the studio since the Morrowind era, and have “shattered” morale. Employees say the loss will have a “substantial and cascading effect” on the development of The Elder Scrolls VI, pushing the already vague release window further out – insiders estimate the game is still at least two to three years away, potentially not arriving until 2028‑2029 or later.

At ZeniMax Online Studios, up to half of the The Elder Scrolls Online development team was let go, prompting a public re‑evaluation of the game’s roadmap. The studio’s community manager announced that the roadmap is “shifting” as the team reorganises.

Both studios report makeshift memorials for laid‑off workers and concerns that the remaining workload will be filled by cheaper contractors unfamiliar with Bethesda’s proprietary tools, raising the risk of additional crunch and further delays. Microsoft’s Xbox chief Asha Sharma described the cuts as the most significant restructuring in Xbox history, citing an “unhealthy” gaming business.

No official release date has been set for The Elder Scrolls VI, and the combined staff reductions leave its future timeline uncertain.