Microsoft has announced another significant round of job cuts, impacting approximately 3,200 employees across the company. The gaming division is expected to be among the hardest hit, with reports indicating that many acquired studios may be sold or returned to independent status.
While Bethesda has not been singled out in the layoffs, its parent company ZeniMax Media is reportedly undergoing a strategic shift. According to Bloomberg reporter Jason Schreier, ZeniMax is restructuring toward a “franchise-first model,” concentrating resources on its most successful game series.
Schreier noted that Bethesda will likely focus on franchises like Fallout, The Elder Scrolls, Quake, Wolfenstein, and DOOM. These titles already boast large, loyal communities and a history of strong sales, offering a more stable revenue stream during uncertain times.
This marks a departure from Bethesda’s historical approach. Prior to Microsoft’s acquisition in 2021, the studio balanced new IPs with established franchises—Starfield being a prime example of that creative freedom. Now, original projects may take a backseat as the company prioritizes expansion of existing worlds.
Neither Microsoft nor Bethesda has officially confirmed these plans, but the reports underscore a broader industry trend: major publishers increasingly lean on proven franchises to weather financial pressures. For Xbox, trusted brands appear to be the guiding strategy as the company adapts to a new business reality.