The Xbox family is about to break apart. Layoff rumors are getting darker by the day, and now ZeniMax and Bethesda appear to be dragged into the storm as well.
According to recent claims from George Broussard, co-founder of 3D Realms and Apogee, layoffs at ZeniMax have already begun. The most worrying part is the claim that anyone not working on The Elder Scrolls or Fallout could be in danger. Developers at Bethesda who are not attached to those two franchises may not be safe.
If true, that would paint a very clear picture of Microsoft’s current strategy: protect the biggest guaranteed money-makers and reduce risk everywhere else. This will surely implement Asha Sharma’s strategy for the Xbox reset.
The term “good niche game” might start to disappear from Xbox’s catalogue. The thing that would satisfy Game Pass growth seems no longer viable. A game might review well, find an audience, or have artistic value, but if it does not become a massive commercial success, it may still be considered expendable. We saw that in the past with the highly critically acclaimed Hi-Fi Rush, which was not good enough for Xbox to keep its developer around, and I fear we may see that spread exponentially. That is a dangerous place for the industry to be, from which we as gamers have only to lose.
From a business perspective, it is not hard to understand why The Elder Scrolls and Fallout would be protected. These are Bethesda’s strongest franchises, and with The Elder Scrolls VI still one of the most anticipated games in the industry, Microsoft obviously cannot afford to damage that pipeline too much. Fallout is also more valuable than ever after the success of the TV series, which brought a huge wave of attention back to the franchise. And with the inevitable announcement of Fallout 5, coupled with some rumoured remakes/remasters of the older entries along the way, it seems untouchable.
Image Source: Xbox/Bethesda
Sadly, we all know ZeniMax is more than just The Elder Scrolls and Fallout. It also includes studios and franchises connected to DOOM, Wolfenstein, Dishonored, Prey, Quake, The Evil Within, and more. What about these amazing franchises? If Microsoft is really narrowing its focus only around proven mega-franchises, then a lot of creative projects could be left behind.
This would also match the wider rumors around Xbox, with reports suggesting that studios like Ninja Theory, Double Fine, and Compulsion Games may be at risk, with some allegedly trying to negotiate independence rather than face closure. If this were to happen, I hope they will bounce back in the same way Tango Gameworks did in the past, being bought out by Krafton. In reality, not all studios will be this lucky.
The volcano is about to erupt. The seismic activity is increasing, gas emissions appear, the temperature is rising, and at this point, we just wait for it to happen.
Bethesda itself will most likely survive. It is too important to Microsoft, and its biggest franchises are too valuable. But the question is what kind of Bethesda and ZeniMax will remain after these cuts, if the reports are true.
If the future is reduced to only the safest names, then Xbox may protect its biggest franchises while losing something just as important: the variety that made these studios worth buying in the first place.