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EuroGamer
As ZeniMax and Bethesda also face cuts, Xbox seeks a "significant overhaul" to focus on huge franchises like Fallout, The Elder Scrolls, Quake, and more
Microsoft's Xbox has revealed plans to lay off approximately 3,200 employees, which includes studios under ZeniMax Media and Bethesda. This restructuring will shift focus towards core franchises such as Fallout and The Elder Scrolls, potentially sidelining smaller projects. Notable franchises like Quake may also see renewed attention, but smaller properties may be at risk of being deprioritized, signaling a major strategic realignment amidst financial pressures.
MonitorConfidence: HighShort term horizonExecution risk: High
Published 6 Jul 2026, 16:52 UTC3 min read
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Summary
TL;DR
- Xbox to cut approximately 3,200 jobs by the end of financial year 2027
- ZeniMax Media and Bethesda facing significant restructuring
- Focus will shift to major franchises including Fallout and The Elder Scrolls
- Smaller projects like Prey and Dishonored may be sidelined
- Rumors of new content for Fallout and The Elder Scrolls amidst layoffs
Interesting facts
- The layoffs are part of a wider trend of cost-cutting measures across the tech industry.
- This strategy comes after the success of the Fallout television series.
- Bethesda hasn't launched a new mainline title for Fallout since 2015.