Microsoft’s latest round of Xbox layoffs is continuing to send waves across the gaming industry, with former Bethesda Game Studios developers warning that the company’s biggest franchises could face significant development challenges. Following the reported loss of more than 3,200 jobs across Xbox, ex-employees say the impact on Bethesda may be deeper than many fans realize.
According to former developers who spoke with Game Developer, the studio has lost experienced programmers, artists, designers, and testers, making future projects like The Elder Scrolls VI and the next Fallout increasingly difficult to produce.
Former developers highlight loss of experience
One former Bethesda developer described the situation as a major setback for the studio’s long-term plans.
“Bethesda Game Studios lost a lot of talent this week. Xbox says they want to focus on their core franchises like Fallout and Elder Scrolls, but that’s going to be harder than ever now,”
the former employee told Game Developer.
Another laid-off developer emphasized the long-term consequences of losing experienced staff, saying,
“The institutional knowledge that has been lost or will be lost completely as individuals leave the gaming industry all together is staggering. Those that are left must be scrambling to pick up the pieces.”
The comments suggest that replacing experienced developers may prove far more difficult than simply hiring new talent.
Future Bethesda games could feel the impact
The latest remarks add to growing concerns surrounding Bethesda’s development pipeline. Earlier reports indicated that the layoffs had already affected morale within the studio and could potentially delay The Elder Scrolls VI, which has remained one of Microsoft’s most anticipated first-party titles for years.
The restructuring has also reportedly affected teams working on The Elder Scrolls Online, raising further questions about how Microsoft’s gaming division will balance cost-cutting measures while continuing to prioritize flagship franchises.
Although Bethesda has not announced changes to its release schedule, former employees believe rebuilding lost expertise will take time, making development of future Fallout and Elder Scrolls games more challenging than before.
