Elder Scrolls 6 Developers Warn Xbox Layoffs Will Stretch an Already Long Development Even Further
For the team building The Elder Scrolls VI, Microsoft's sweeping cuts across its gaming division are a direct threat to the project's timeline. Multiple Bethesda developers have spoken out this week, telling gaming news outlets that the layoffs will damage both the RPG's development and the morale of the people still working on it.
The concerns come in the wake of Xbox's broader round of 3,200 layoffs that have reshaped the entire Microsoft gaming operation. Studios like Obsidian and id Software have felt the impact in different ways. Bethesda, quietly grinding away on its next flagship RPG, is no exception — and its developers aren't prepared to stay silent on this.
The franchise was teased way back in 2018 via a brief, now-legendary clip of a coastal landscape. Since then, updates have been scarce while Bethesda wrapped up Starfield and gradually shifted focus toward TES VI. Todd Howard said late last year that the project is "progressing really well," though he also acknowledged around the same time that it's "still a long way off." That already-cautious timeline is now looking shakier, with almost a decade now having passed since we last got our hands on a new, major Elder Scrolls game.
Staff across multiple disciplines — programming, art, and others — have been cut. One developer told IGN they will have a "substantial and cascading effect" on both the game and the people still making it. The concern isn't just about headcount. It's about what gets lost when experienced people with years of institutional knowledge walk out the door. One of the biggest issues we’ve seen raised relates to younger, inexperienced devs who’ll no longer be able to draw on the experience and wisdom of older heads – or inexperienced hires who need onboarding.
The proprietary nature of Bethesda's toolset makes the departures especially painful. "There is a fear that we are going to be replaced by cheaper, contracted labor, or we will hire folks to replace them that will need to be onboarded — our tools are proprietary, other devs aren't going to know how they work — resulting in more delays, and we'll need to crunch to make up the time," one developer noted. It’s a domino effect: experienced staff are lost, contractors are brought in who don’t know the system, which means production slows.
The situation for Fallout 76 is also in question. A Bethesda developer told IGN that colleagues are already being asked to train newly brought-in contractors, adding, "I have no idea how they'll continue updating Fallout 76 without hiring an external studio." That live-service title represents an ongoing commitment that now has to be maintained with a thinned-out team.
One developer summarized the anxiety simply: "We were already running a tight ship and are worried about this delaying the game." Is it easy to pull of a game like Elder Scrolls under such pressure? Doubtful.
The Elder Scrolls VI is still 2-3 years away from release.
— Gazz (@Gazz_54) July 9, 2026
We got the first teaser trailer in 2023 and they’re telling us it’s still that far off. That’s almost a full decade between major Elder Scrolls games.
At this point a huge chunk of the people who grew up on Skyrim are… pic.twitter.com/xqVaUH5WZV
Morale has taken a serious blow. A laid-off staff member reflected on the psychological toll the pattern of annual cuts has taken: "The 'survivors' were told they're safe from those next 1,600 but it's not entirely reassuring. Even if that's true, who's to say there's not another 1,600 next year after that? It's had the chilling effect of realizing you don't get to retire off your work at Xbox. Your time ends when you quit or are laid off, that's it."
Despite the anxiety, a corporate goal continues to gun in the opposite direction. Microsoft has made accelerating output from its major RPG franchises — The Elder Scrolls and Fallout chief among them — a stated priority. Obsidian, whose Avowed sequel was cancelled following the cuts, has reportedly been redirected to work on a new Fallout title. Double Fine and Compulsion Games were among the studios cut loose entirely in the reorganization. The logic seems to be “cut studios, secure faster releases from those that remain.” But is losing veteran developers and replacing them with contractors the way to get there? Big question.
For even the most optimistic fans of the franchise, it’s hard to look at this situation and feel good about Elder Scrolls VI's near-term trajectory. The math just isn’t adding up here. Microsoft wants to put games out faster but the people building them are warning, in plain terms, that these cuts make delays more likely. Replacing deep institutional knowledge with cheaper contract labor and expecting the same output is a bet that hasn't paid off well in this industry historically.
And while eager fans might point to the fact that there's no revised release window for The Elder Scrolls VI, it’s worth remembering that there wasn't a precise one to begin with. What's changed is that the people closest to the project are now openly expressing doubt about whether the internal timeline they were working toward is still realistic. For now, Microsoft hasn’t publicly addressed the specific concerns raised by Bethesda staff. When they do, we’ll let you know.
