The most recent round of layoffs announced by Xbox on Monday, July 7, is set to leave deep scars across Bethesda. While the affected developers will continue to exist, many of Bethesda’s core studios will see their internal development capacities severely diminished.
The staff reductions hit both ZeniMax Online, the team behind The Elder Scrolls Online and Doom creator id Software, which just launched the final major update for Doom: The Dark Ages earlier this week.
According to Scott Miller, founder of Apogee and 3D Realms, id Software lost 95 professionals, with the vast majority consisting of the staff responsible for creating and maintaining the studio’s proprietary id Tech engine.
George Broussard, another co-founder of Apogee and 3D Realms, confirmed that the Doom developer effectively lost 50% of its workforce.
As a result of losing half its staff, id Software has effectively lost the capacity to lead projects independently, whether that includes future Doom sequels or new installments in franchises like Quake. Industry discussions on social media are now openly questioning whether the remainder of id Software will be reduced to a support studio or forced to adopt Epic Games’ Unreal Engine.
“It really feels like id is now a support team for Bethesda and others. RIP id Tech, which was awesome. Maybe Machine Games will keep it going or maybe it’s cast aside for future games?” Broussard questioned on social media. “But the read is that id is essentially dead. At least for now. That is, the studio didn’t close and half of them still have their jobs. That’s great.”
This outcome directly contradicts Xbox’s own stated directive for Bethesda, which mandated that the publisher focus heavily on its most consolidated and established franchises moving forward. Analysts note this process is no longer viable if the remaining development teams lack the necessary resources and institutional knowledge.
ZeniMax Online is navigating a similar, though less severe, workforce reduction. The layoffs resulted in the dismissal of 35 individuals working on The Elder Scrolls Online, a group that included multiple senior members responsible for critical components of the MMORPG.
Remaining staff members have stated on social media that they stay committed to delivering the next major update for the MMO. However, the studio will be forced to re-evaluate its development roadmap for the coming months.
“While we’d love to be able to share concrete details today, we’re going to take a step back to adjust our plans, so we can come back with a clearer timeline,” the developer stated officially.
Amanda Torati is a linguist and postgraduate researcher who specializes in the intersection of storytelling and interactive media. With a deep fascination for the gaming ecosystem, she focuses on deconstructing game narratives and technical trends to make them accessible to players of all levels. At ABWaves Game, Amanda combines her academic background with in-depth research to deliver reviews and guides that are both precise and engaging, ensuring readers stay informed in a fast-paced digital world.
The Elder Scrolls Online is set to undergo major changes following severe layoffs at Zenimax Online. A little over a week after Xbox announced the layoff of 3,200 people—1,600 of them with immediate effect—the consequences of the decision on its game studios are becoming clearer.
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