Bethesda has revealed that it is planning to restructure around its “strongest franchises” in wake of the mass layoffs that have hit Xbox this week.
Speaking during an email to staff, studio head Jill Braff revealed that Xbox’s layoffs and plans to reset “reflect the realities of our industry and business — and our responsibility to ensure Bethesda is operating from a more stable foundation.” This also comes in wake of a report on IGN that stated Bethesda had been hit “particularly hard” by the Xbox job losses, with Bloomberg also claiming the company is set to focus on major franchises including DOOM, Fallout, The Elder Scrolls, Quake, and Wolfenstein.
As we look ahead, we will meaningfully evolve how we operate. For decades, Bethesda has organized its business around the individual roadmaps of our largely independent development studios, supported by centralized publishing and corporate teams.
This model enabled us to create some of the industry’s most beloved franchises. However, rising player expectations, increasing development complexity, and a more competitive market have changed the economics of our industry.
To best position Bethesda for future growth, we are shifting from a planning model primarily centered on what’s next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole. From there, we’ll align the right talent, technology, and resources across the organization to deliver on those priorities.
Xbox’s layoffs are set to impact over 3,000 job, with some already having gone into effect while more job losses are expected over the next year. Furthermore, a number of studios are either being sold off or will go independent as a result of the cuts.