Former Bethesda developers say that Xbox's recent layoffs have resulted in a significant loss of personnel and knowledge that could affect the future development of Fallout and The Elder Scrolls. Xbox has recently hit the "reset" button on the business, reorganizing and restructuring its operations to reflect changing industry conditions.
Since the beginning of the summer, Xbox has been significantly changing its operations as new CEO Asha Sharma continues her next 100 days. On July 6, 2026, Sharma published a letter to Team Xbox employees stating that the company would see roughly 3,200 layoffs as part of a broader organizational reset. Renowned studios like Bethesda Game Studios, ZeniMax Online Studios, and id Software suffered staff reductions, while other smaller studios were sold off entirely. Although Xbox executives have stated that the company is refocusing its resources on its largest franchises, developers are now going on record to voice concerns that these cuts will drastically impact games like Fallout and The Elder Scrolls.
As part of new Xbox CEO Asha Sharma's "reset," the gaming giant releases a new statement on the future of Bethesda and its biggest IPs.
Anonymous developers working under the ZeniMax Media umbrella, either currently or formerly, have...
