Bethesda Puts Elder Scrolls 6 First as Fallout 5 Enters Preproduction After 20% Xbox Cuts
Updated
Updated · Variety · Jul 17
Bethesda Puts Elder Scrolls 6 First as Fallout 5 Enters Preproduction After 20% Xbox Cuts
2 articles · Updated · Variety · Jul 17
Summary
Todd Howard said Fallout 5 has entered preproduction, while most of Bethesda Game Studios is now focused on The Elder Scrolls 6, which he said is on plan and already playable internally.
Creation Engine 3 underpins both projects, Howard said, letting Bethesda support multiple games at once with shared tools, rendering and systems built since Starfield launched.
Bethesda also confirmed multiple Fallout projects are active, including a new title with Obsidian, plus remaster work on Fallout 3 and Fallout: New Vegas without release dates.
The update lands after Xbox said it would cut up to 3,200 jobs, or 20% of staff; at least 1,600 layoffs and 350 eliminations through divestitures have already been disclosed.
Beyond its next RPGs, Bethesda said Starfield will get new Starborn content next year, Fallout 76 will add the Raven Rock expansion, and Fallout's 30th anniversary will be marked live in Washington in 2027.
With morale shattered by layoffs, is Bethesda's ambitious roadmap a genuine plan or a desperate fantasy?
As Xbox's gaming division falters, can its flagship studios still deliver on their biggest promises?
Bethesda at a Crossroads: The Impact of Xbox’s 2026 Layoffs, Centralized Strategy, and Franchise Prioritization
Overview
In 2026, Xbox faced major restructuring after internal assessments revealed low business margins and underperforming Game Pass and multi-platform strategies. This led to a severe hardware crisis and a strategic reset, resulting in 3,200 layoffs across the Xbox division, with 1,600 in early July alone. Bethesda Game Studios and its parent company ZeniMax were hit hard, losing key staff and leadership. These cuts created uncertainty for ongoing projects like The Elder Scrolls VI and Fallout 76, raised concerns about developer morale, and sparked union-led protests. Xbox’s new centralized strategy now focuses on established blockbuster franchises, reshaping Bethesda’s future direction.