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Layoffs

Ongoing coverage on Layoffs.

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IGN

The Elder Scrolls 6 Will Suffer Because of Xbox Layoffs, Bethesda Staff Say, Fearing Delays, Crunch, and Generational Talent Being Replaced by Contractors

Bethesda staff express concerns that recent Xbox layoffs will significantly impact the development of The Elder Scrolls 6. They fear potential delays, increased crunch, and the replacement of experienced talent with contractors.

Eurogamer

Doom and Quake studio id Software reportedly gutted, leaving standalone capabilities in doubt and newly revealed game ideas dead

Microsoft's restructuring has severely impacted id Software, with 136 employees laid off, leaving fewer than 50 staff. This reduction in force has reportedly led to the cancellation of new game ideas like 'Fury' and a 'Perfect Dark' title, and casts doubt on the studio's ability to develop full-scale games independently. The future of id Software appears to be shifting towards a support role for other Xbox studios, potentially focusing on its proprietary id Tech engine.

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Eurogamer

Fallout: New Vegas studio Obsidian reportedly moved onto a new Fallout game by Xbox, but at the cost of a sequel to Avowed

Xbox has reportedly shifted Obsidian Entertainment's focus to a new Fallout game following significant layoffs at the studio. This move has led to the cancellation of multiple projects, including a sequel to the RPG Avowed. Studio design director Josh Sawyer, who previously directed Fallout: New Vegas, is expected to lead the new Fallout title.

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Tech Raptor

Obsidian Has Cancelled Multiple Projects To Make New Fallout, Per Report

According to a report, Microsoft has canceled multiple projects at Obsidian Entertainment to have the studio develop a new Fallout game, with Josh Sawyer leading the design. This decision comes amidst significant layoffs at Microsoft and Obsidian, and the cancellation of a planned sequel to Avowed. The new Fallout title will be the first mainline entry in the series since Fallout 4 in 2015.

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Retro Gamer

Pitches for a co-op Doom, a new Perfect Dark, and a John Wick-inspired cyberpunk game were cooking at id Software before Microsoft layoffs reportedly led to 136 job cuts

id Software reportedly had multiple projects in development, including a new Perfect Dark, a John Wick-inspired cyberpunk game titled Fury, and a multiplayer Doom title, before significant layoffs occurred. These pitches were made after the completion of Doom: The Dark Ages' Revelations DLC, and the studio's future now seems uncertain as Xbox reportedly pushes for faster releases of major franchises like The Elder Scrolls 6 and Fallout 5.

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Rock Paper Shotgun

Doom devs id Software were reportedly kicking around ideas for a new Perfect Dark, a John Wick-inspired game, and multiplayer demonslaying prior to layoffs

Following recent layoffs at id Software, the studio was reportedly exploring ideas for new games, including a new Perfect Dark title and a John Wick-inspired action game codenamed Fury. These pitches were being considered after the completion of Doom: The Dark Ages' Revelations DLC, though it remains uncertain if id Software has sufficient staff to pursue these projects. Other concepts included a wild west robot survival game and further Doom multiplayer or DLC content.

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Metro UK

New Fallout game in development by makers of New Vegas but at a cost

Xbox has commissioned Obsidian Entertainment, the studio behind Fallout: New Vegas, to develop a new Fallout game, led by project director Josh Sawyer. This decision comes after Obsidian experienced significant layoffs, with reports suggesting that previous projects were cancelled to prioritize this new Fallout title. The move aims to capitalize on the franchise's popularity, potentially releasing before Bethesda's Fallout 5.

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Gamedeveloper.com

Xbox had laid off 379 Zenimax workers in Maryland

Microsoft's Xbox division has laid off 379 employees across ZeniMax Media Inc. and ZeniMax Online Studios in Maryland. The cuts, effective September 4, 2026, impact 213 workers at The Elder Scrolls Online developer and 166 at ZeniMax Media Inc. This follows a broader trend of job reductions at Xbox, with a total of 3,200 roles being cut across the division.

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Games Industry

Report: Obsidian to work on Fallout title as unannounced projects cancelled

Obsidian Entertainment is reportedly developing a new Fallout game, led by Fallout: New Vegas director Josh Sawyer, as part of a wider Xbox restructuring that has led to the cancellation of several unannounced projects and layoffs. A small team will continue work on an Avowed sequel, while others focus on DLC for The Outer Worlds 2 and Grounded 2. This news follows a significant increase in Fallout game sales after the premiere of the Prime Video adaptation.

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FZ.se

Rapport: Obsidian skrotar flera projekt för att jobba på ett nytt Fallout

Obsidian Entertainment is reportedly shifting focus to a new Fallout game, led by Fallout: New Vegas director Josh Sawyer. This pivot means a sequel to Avowed is being put on hold, with only a small team maintaining it. The studio has also undergone significant layoffs, cutting about a quarter of its staff, though development will continue on DLC for The Outer Worlds 2 and Grounded 2.

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Checkpoint Gaming

Obsidian Entertainment returns to Fallout franchise, while cancelling Avowed 2

Obsidian Entertainment is returning to the Fallout franchise with a new game led by Josh Sawyer, director of Fallout: New Vegas. This shift comes after Xbox announced mass layoffs, leading to the cancellation of Avowed 2 and other unannounced projects. The studio aims to leverage Xbox's established IPs for growth following recent sales disappointments.

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To Much Gaming

Obsidian Ditches Avowed Sequel for New Fallout Game — Too Much Gaming | Video Games Reviews, News, & Guides

Obsidian Entertainment has cancelled an Avowed sequel and laid off 52 employees as it shifts focus to a new Fallout title, led by Josh Sawyer. The studio is also continuing work on DLC for The Outer Worlds 2 and the multiplayer game Grounded 2. This comes as Xbox Game Studios undergoes significant restructuring, impacting multiple studios including Id Software.

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Shack News

This Week in Switch 2 - PlayStation's physical media fiasco, Xbox layoffs & Nintendo's annual report

This Week in Switch 2 covers recent Nintendo news, PlayStation's announcement regarding physical media, and significant layoffs at Microsoft's Xbox division. The article also mentions a preview for Splatoon Raiders and free interactive maps for other games.

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PC Gamer

Are you excited for a new Fallout game from Obsidian? You know, given everything

Reports suggest Microsoft has tasked Obsidian Entertainment's Josh Sawyer, director of Fallout: New Vegas, with leading a new Fallout RPG. This development comes amidst significant layoffs at Xbox and Obsidian, which reportedly led to the cancellation of an Avowed sequel. The situation remains fluid, but the prospect of a new Obsidian-developed Fallout game has generated mixed reactions due to the circumstances surrounding its potential creation.

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Metro UK

Games Inbox: Is The Elder Scrolls 6 going to be worth the wait?

Readers express concerns about the lengthy development of The Elder Scrolls 6, criticizing Bethesda's recent game output and treatment of developers. The discussion also touches upon the shift to digital-only distribution, the impact of layoffs at Microsoft and Bethesda, and the future of subscription services like Game Pass.

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IGN

id Software Was Reportedly 'Toying With' Pitches for a New Perfect Dark, a John Wick-Inspired Game, and More Before Layoffs

id Software was reportedly exploring pitches for new projects, including a new Perfect Dark and a John Wick-inspired game, prior to recent layoffs that affected more than half of the studio's staff. Microsoft's involvement in these discussions is implied due to their ownership of id Software.

Gaming Bolt

The Elder Scrolls 6 Team Worried About Delays and Crunch Following Layoffs – Rumor

Recent layoffs at Bethesda, impacting key personnel working on The Elder Scrolls 6, have reportedly caused concern among the development team regarding potential delays and increased crunch. The departures include programmers, artists, and designers, with fears that contract labor may be used to fill the gaps. The Elder Scrolls 6, announced in 2018, currently has no release date, but is estimated to be at least two years away.

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Gaming Bolt

The Elder Scrolls Online Studio Layoffs Affect 213 Employees

ZeniMax Online Studios has laid off 213 employees, a significant portion of its workforce, following Microsoft's broader layoffs impacting Xbox. This reduction has led to a shift in the content roadmap for the MMORPG The Elder Scrolls Online. Former employees expressed disappointment and concern over the impact on the game's development and the team's well-being.

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Gaming Bolt

DOOM Studio Pitched New Perfect Dark, John Wick-Style Projects Before Layoffs – Rumor

Rumors suggest id Software pitched several new projects, including a Perfect Dark reboot and a John Wick-inspired sci-fi noir game codenamed Fury, before recent layoffs significantly impacted its staff. These proposed titles were intended to diversify beyond the DOOM franchise. The studio's future as a standalone team is now uncertain following extensive job cuts, which are part of broader layoffs at Microsoft.

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Gaming Bolt

id Tech is Still Part of Xbox’s Future Despite Layoffs – Rumor

Despite recent layoffs at id Software, the id Tech game engine remains a part of Xbox's future plans, according to a report. Many employees working on the engine's development were affected by the cuts. The engine is expected to be used in future projects at id Software and by MachineGames for their Wolfenstein titles.

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