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Elder Scrolls 6 And Fallout 5 Threatened By Alarming Xbox Shake-Up
Home>News>Platform>Xbox
Published 10:17 16 Jun 2026 GMT+1

Elder Scrolls 6 And Fallout 5 Threatened By Alarming Xbox Shake-Up

The next Elder Scrolls and Fallout are both in the hot seat.

Sam Cawley

Sam Cawley

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Featured Image Credit: Bethesda

Topics: Bethesda, Xbox, Fallout, The Elder Scrolls, The Elder Scrolls 6

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Following the alarming news of more Xbox layoffs, gamers are looking to Bethesda for word on the The Elder Scrolls VI team, and by extension Fallout 5.

Xbox has been on quite the winning streak recently but it turns out you can only say “we’re so back” so many times.

After giving away limited-edition Xbox Series X consoles at Summer Game Fest and campaigning to bring back exclusives, the company has taken one step forward and two steps back with its latest inner shake-up.

Xbox Is Laying Off Employees Across Several Studios

Unconfirmed reports from Bloomberg say Xbox is targeting studios like Compulsion Games, Rare, Double Fine and others with layoffs in July, in order to maximise efficiency moving forward. After making Gears of War: E-Day an Xbox exclusive again, it’s clear the company wants games, and studios that take a little too long to produce them seem to be getting the axe.

According to French journalist Sylvain Trinel, even the bigger studios like ID Software and Bethesda aren’t safe either.

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In a post on XCancel they said: “What's happening with Microsoft is just the beginning of a massive bloodbath for publisher-owned studios.”

Don't Nod and Quantic Dream were named as two teams that could see lay-offs but Sylvain also said, “I'd take a look—if I were you—at what's happening at ID Software, Bethesda Studios, and also BioWare... The feedback I've heard tonight is far from encouraging. This is really just the beginning.”

They described the whole ordeal as a “disaster” which seems to be putting it lightly.

This obviously raises some concerns about The Elder Scrolls VI, as while the project certainly won’t be cancelled, it feels like questions are being raised over just how long it’s taking to develop.

The Elder Scrolls 6-
Bethesda

Earlier this week, it was said Xbox is keen to get more Elder Scrolls and Fallout games releasing in the coming years, which seems to directly clash with Bethesda’s tactic of announcing games in 2018 and not saying a word about them for nearly a decade.

Reading between the lines, it sounds like pressure is being mounted on Bethesda to speed the game along, which in game development usually means cut corners and a worse product by launch day.

If Xbox is keen to push The Elder Scrolls and Fallout though, it makes the supposed layoffs at Obsidian Entertainment even more bizarre.

Surely the logical step would be to force the next Fallout game out of Bethesda’s hands and give it to the studio that brought us Fallout: New Vegas. Some of the devs who worked on New Vegas have already expressed interest in another game.

This is obviously a progressing story so stay tuned for further updates, and hopefully a statement from Xbox on the matter.

READ NEXT: PlayStation Store Mid-Year Sale Is Live, Here Are 7 Must-Buy Games

  • Elder Scrolls 6 gets first positive update in years amid Xbox reshuffle
  • The Elder Scrolls 6 delay could lock millions out of next Bethesda game as Xbox tightens development
  • Elder Scrolls 6 gets first update in months from Bethesda
  • The Elder Scrolls 6 launch window revealed as lay-offs push game out of touching distance

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