Elder Scrolls Online team affected by layoffs, devs uncertain about MMORPG's future with such a small team

Following deep personnel cuts, ZeniMax remains committed to The Elder Scrolls Online, yet the devs remaining after the layoffs are worried about the future of the long-running MMO.

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Xbox recently announced it will lay off a total of 3,200 people from now until June 2027. Half of that amount, some 1,600 people, are in the process of being let go across all of Xbox's divisions; from sales and marketing to QA and level design, the layoffs affect multiple divisions and studios. Four studio groups will be divested--Ninja Theory, Compulsion Games, Double Fine, and Undead Labs.

ZeniMax is also affected. While exact numbers remain unclear, reports indicate that a substantial portion of ZeniMax Online Studios has been let go. ZOS is responsible for the popular Elder Scrolls Online MMORPG that has accumulated tens of millions of players throughout the years. The cuts were so substantial that anonymous developers remaining at ZOS tell Kotaku that they have worries about the future of the game. As an online-driven MMO, games like ESO have a unique synergistic affinity for subscription services like Xbox Game Pass.

Sources recently told The Information that Xbox is doubling-down on key franchises like The Elder Scrolls, with new CEO Asha Sharma investing more to accelerate development of Elder Scrolls VI.

An internal email from Bethesda president Jill Braff outlines the future of ZeniMax:

"To be successful in the future, we need to change course.

"We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn't make a day like today any easier.

"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."

Publicly, ZeniMax Online Studios has fortified its commitment to the game, with ESO's community manager sharing the following message:

"Looking beyond Season One, the roadmaps we previously shared will be shifting. We want to take the time to evaluate the work in front of us and then lock down an updated schedule. While we'd love to share concrete details today, stepping back to get our plans straight will let us come back to you with a clear timeline."

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. Tap a question to reveal the answer, or type your own below.

Question #1

How will the layoffs at ZeniMax Online Studios affect upcoming ESO content roadmaps and patch schedules?

The layoffs will cause ZeniMax Online Studios to shift and delay previously shared ESO roadmaps and patch schedules while the smaller team evaluates remaining work and locks down an updated schedule. Publicly the studio says roadmaps beyond Season One will be reassessed and they will step back to establish a clear timeline before sharing concrete details.

Answered

Question #2

Are any specific development teams or roles at ZOS (e.g., QA, live operations, DLC teams) reported as disproportionately impacted by the layoffs?

The primary article reports that multiple divisions across Xbox were affected, including sales and marketing, QA, and level design, and that a substantial portion of ZeniMax Online Studios was let go, but it does not specify which ZOS teams or roles (for example QA, live operations, or DLC teams) were disproportionately impacted. This question cannot be answered from this article.

Answered

Question #3

How might the shift to prioritizing franchise projects like Elder Scrolls VI influence resource allocation for ESO?

Prioritizing franchise projects like Elder Scrolls VI could shift talent, technology, and resources away from ESO as ZeniMax aligns staff to franchise roadmaps. The company stated it will "align the right talent, technology, and resources across the organization to deliver on those priorities," and ESO roadmaps will be re-evaluated and adjusted as a result.

Answered

Question #4

What timeline should players expect for an official updated ESO roadmap and how will ZOS communicate schedule changes?

Players should expect ZOS to take time to evaluate work and then "lock down an updated schedule" before sharing concrete details, meaning no specific timeline was given in the article. ZOS said it will step back to get plans straight and then come back with a clear timeline, indicating schedule changes will be communicated via updated roadmaps shared publicly by the studio.

Answered

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It was revealed in June 2024 that The Elder Scrolls Online had nearly crossed the $2 billion revenue threshold after 10 years on the market. Conversely, something like the free-to-play megaton sensation like Fortnite was able to generate over $20 billion in revenue in just six years after launch.