Following weeks of rumours and speculation, Microsoft and Xbox have announced today around 3200 jobs are being cut before financial year 2027 ends, with a number of studios being let go to find new owners or go independent. As more details pour out, we’ve also learned ZeniMax Media and Bethesda Softworks are facing cuts – even if no studios are closing. Moreover, there are new plans for their key properties moving forward.
Bloomberg’s Jason Schreier and Brody Ford elaborated on what’s happening at Xbox, and while we’re still waiting for more details and comments to come out, there’s a bit of Bloomberg’s report worth highlighting: “ZeniMax will face a significant overhaul and will pivot to focus on its biggest franchises: Fallout, The Elder Scrolls, Doom, Quake, and Wolfenstein.” Schreier also added the studios under ZeniMax’s umbrella – which includes Bethesda’s whole roster – are cutting lots of staff as part of the organisation-wide layoffs.
The need for more Fallout seems like a no-brainer, as Bethesda Softworks’ output isn’t matching the demand for new titles following two stellar seasons of the TV show. Even if rumours of a big Oblivion Remastered-style Fallout 3 refresh refuse to die, the IP is running on Fallout Shelter, a recent FO4 re-release, and 76 updates for the time being as Bethesda Game Studios‘ focus is on more Starfield and The Elder Scrolls.
Speaking of The Elder Scrolls, this also signals Xbox is putting even more pressure on the sixth mainline entry to deliver as ZeniMax Online’s The Elder Scrolls Online shows signs of slowdown after over a decade live. Obviously, the focus on these tried-and-tested IP marks yet another blow to Starfield’s long-term franchise potential, even if the developers recently said more content is coming.
Doom developer id Software is reportedly facing cuts as it’s just delivered Doom: The Dark Ages – Revelations, an expansion-sized DLC that launches tomorrow, 7th July. Though some recent comments suggested the studio still wants to do more with the Doom Slayer’s current saga, we could be seeing a return to Quake, which has only received remasters and thin-but-consistent support for Champions in recent years via external partners. In any case, it sounds like Xbox wants more from both IPs.
Last but not least, MachineGames was reportedly working on a new Wolfenstein after Indiana Jones and the Great Circle. It could also tie into the upcoming TV show one way or another, potentially giving Bethesda the brand synergy its Fallout show has half-missed on. If we look closer at Xbox’s intentions of bolstering its major IPs, however, it’s hard to imagine a new Indy adventure happening since that’s owned by Disney and Lucasfilm. We don’t know for sure what post-reset Xbox’s attitude towards ‘mercenary work’ is though.
Needless to say, this new direction leaves no room for smaller or established-but-hurt properties like Prey, Deathloop, or even Dishonored. It’s why Arkane is reportedly looking for a new home despite being deep into Marvel’s Blade’s development. Expect more updates to hit in the coming days and weeks as Xbox’s new strategy comes into focus.
